Policy Wise: India’s Power Sector

Power ministry mandates use of smart prepaid meters from April 2019Priority 1


Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

From UPSC perspective, the following things are important:

Prelims level: Saubhagya scheme

Mains level: Utility of smart meters


  • The government has mandated the use of smart prepaid electricity meters in the country beginning April next year, as it looks to complete the transition over the next three years.

Utility of Smart Prepaid Meters

  1. Smart meters are a part of the overall advanced metering infrastructure solutions (AMI) aimed at better demand response designed to reduce energy consumption during peak hours.
  2. Manufacturing of smart prepaid meters will also generate skilled employment for the youth.
  3. Other benefits include:
  • Reduction in AT&C losses
  • Better health of DISCOMs
  • Incentivizing energy conservation
  • Ease of bill payments and doing away with the paper bills

Initiatives so far

  1. The government is procuring smart and prepaid meters to be deployed across the country.
  2. State-owned Energy Efficiency Services Limited (EESL) has floated two global tenders for procuring a total of 10 million smart meters.
  3. The government also plans to install 10 million prepaid meters in Uttar Pradesh as part of the Saubhagya scheme which aims to electrify over four crore households till March 2019.

States gearing up

  1. State governments had earlier signed the Power for All documents and had agreed to supply power round the clock to their consumers.
  2. Under this, the distribution licensee shall provide 24×7 power to their consumers by 1st April, 2019 or earlier.

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