Stable Outlook for Smart Metering Projects in FY26
ECONOMY & POLICY

Stable Outlook for Smart Metering Projects in FY26

India Ratings and Research (Ind-Ra) has upheld a stable outlook for smart metering projects in FY26, primarily supported by the go-live status of most rated projects, the implementation of automated payment systems through the Direct Debit Facility (DDF), government backing, and strong domestic manufacturing capabilities. According to Ind-Ra, debtor days remain within comfortable levels for rated entities.

The pace of meter installations in FY25 has been slower than expected, with a forecasted improvement within the next 12 to 18 months. The delay in progress was attributed to developers prioritizing IT infrastructure, the impact of general elections, and consumer reluctance toward installations. However, discoms within Ind-Ra’s rated portfolio have successfully implemented the DDF mechanism, ensuring timely payments for Advanced Metering Infrastructure Service Provider (AMISP) charges through tripartite agreements.

As of January 8, 2025, the RDSS schemes have awarded contracts for 110.6 million meters, with an implementation rate of just 6%. On the other hand, non-RDSS schemes have seen better success, with 2.97 million meters awarded and an implementation rate of 81%. Despite these challenges, the overall technical and commercial losses, which stood at 15.37% in FY23, are expected to decrease with the adoption of smart meters.

The DDF mechanism ensures that payments for AMISP services are safeguarded by a payment gateway, with at least five times the estimated monthly charges available for service providers. Discoms treat these charges as operational expenses, prioritizing them over other costs. However, the regulatory acceptance of these charges has been inconsistent across states.

India’s manufacturing capacity for smart meters is currently around 70 million units annually, with manufacturers expanding capacity by setting up new assembly lines. While progress on installations and regulatory approvals remain crucial, Ind-Ra expects these factors to play a pivotal role in the sector’s performance over the next fiscal year.

India Ratings and Research (Ind-Ra) has upheld a stable outlook for smart metering projects in FY26, primarily supported by the go-live status of most rated projects, the implementation of automated payment systems through the Direct Debit Facility (DDF), government backing, and strong domestic manufacturing capabilities. According to Ind-Ra, debtor days remain within comfortable levels for rated entities. The pace of meter installations in FY25 has been slower than expected, with a forecasted improvement within the next 12 to 18 months. The delay in progress was attributed to developers prioritizing IT infrastructure, the impact of general elections, and consumer reluctance toward installations. However, discoms within Ind-Ra’s rated portfolio have successfully implemented the DDF mechanism, ensuring timely payments for Advanced Metering Infrastructure Service Provider (AMISP) charges through tripartite agreements. As of January 8, 2025, the RDSS schemes have awarded contracts for 110.6 million meters, with an implementation rate of just 6%. On the other hand, non-RDSS schemes have seen better success, with 2.97 million meters awarded and an implementation rate of 81%. Despite these challenges, the overall technical and commercial losses, which stood at 15.37% in FY23, are expected to decrease with the adoption of smart meters. The DDF mechanism ensures that payments for AMISP services are safeguarded by a payment gateway, with at least five times the estimated monthly charges available for service providers. Discoms treat these charges as operational expenses, prioritizing them over other costs. However, the regulatory acceptance of these charges has been inconsistent across states. India’s manufacturing capacity for smart meters is currently around 70 million units annually, with manufacturers expanding capacity by setting up new assembly lines. While progress on installations and regulatory approvals remain crucial, Ind-Ra expects these factors to play a pivotal role in the sector’s performance over the next fiscal year.

Next Story
Infrastructure Urban

CRCL, IIT Delhi Sign MoU to Boost Science and Ease of Business

The Central Revenues Control Laboratory (CRCL), Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, and the Indian Institute of Technology (IIT) Delhi signed a Memorandum of Understanding (MoU) toward trade facilitation and improving the ease of doing business. This MoU collaboration aims to foster R&D, innovation, and scientific excellence at CRCL, bolstering trade facilitation and regulatory efficiency.The MoU was signed by Prof. Rangan Banerjee, Director, IIT Delhi, and Shri V. Suresh, Director, CRCL, in presence of Shri Surjit Bhujabal, Speci..

Next Story
Infrastructure Urban

CAQM Sub-Committee Activates 27-Point Plan to Improve NCR Air Quality

The daily average AQI of Delhi has been hovering marginally above 200 threshold with forecast of slight improvement since last two days. Today, Delhi’s daily average Air Quality Index (AQI) clocked 213 (‘Poor’ category), as per the daily AQI Bulletin provided by the Central Pollution Control Board (CPCB), owing to variable winds. In wake of the average/ overall air quality of Delhi recording ‘Poor’ air quality category ranging between 201-300, the CAQM Sub-Committee on GRAP met today to take stock of the current air quality scenario of Delhi-NCR. While comprehensively reviewing the a..

Next Story
Infrastructure Urban

DoT Launches Financial Fraud Risk Indicator to Boost Cybersecurity

In a major step towards combating cyber fraud and financial crime, the Department of Telecommunications (DoT) has announced sharing of “Financial Fraud Risk Indicator (FRI)” with stakeholders- an output from a multi- dimensional analytical tool developed as part of the Digital Intelligence Platform (DIP) to empower financial institutions with advance actionable intelligence for cyber fraud prevention. This will enhance cyber protection and validation checks in case of mobile numbers flagged with this tool when digital payment is proposed to be made to such numbers.What is the “Financial ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?