India pushes smart meter rollout as grid modernization grows

  • September 2, 2026
  • Esther Shein

States and union territories have been directed by India’s ministry of power to accelerate smart electric meter installations and ensure compliance with updated metering requirements. The move is part of a wider effort in the country to modernize power distribution and improve the financial and operational performance of electricity utilities.

It is expected to strengthen implementation under the Revamped Distribution Sector Scheme (RDSS) and other state-led programs. The direction follows amended metering regulations introduced by the Central Electricity Authority in 2026. Where suitable communications networks are available, electricity supply is required to use smart meters that comply with Indian standards. The requirement applies to both prepaid and postpaid customers.

The scale of the program is noteworthy. Smart metering projects worth about ₹1.31 lakh crore (approximately $13.78 billion US) have been approved under RDSS These projects are expected to cover around 19.79 crore (197.9 million consumers), 2.05 lakh (205,000) feeders, which refers to the specific volume of electrical distribution lines approved for smart meter installation under the government’s RDSS, and more than 52.53 lakh (5,253,000) distribution transformers. Smart meters are only one part of the wider modernization effort.

Around ₹1.53 lakh (approximately $1,579) crore of projects have been approved for infrastructure aimed at reducing distribution losses. A further ₹2,627 ($278,100.26) crore has been allocated to Supervisory Control and Data Acquisition and Distribution Management Systems across 394 towns.

India has also approved about ₹3,999 crore (approximately approximately $420.77 million) for information technology and operational technology upgrades. These include enterprise resource planning systems and geographic information system mapping.

Special smart distribution projects have been authorized across seven major cities worth ₹8,608 ($91.12) crore. These projects include underground cabling, transformer health monitoring, and other measures designed to improve the reliability and visibility of electricity networks.

Smart meter adoption is no longer being motivated by individual utility decisions. States and distribution companies are being pushed by central policy toward broader compliance, which gives the program a clearer implementation framework.

Smart meters can improve billing accuracy, energy accounting and consumption monitoring. They can also give distribution companies better information on electricity use and network conditions. Prepaid meters can support advance collection of revenue, while digital consumption data can help utilities manage demand more effectively.