Power Minister urges States to accelerate smart meter rollout

Union Power Minister Manohar Lal Khattar has stressed on modern, resilient and financially viable power sector during the southern region conference in Bengaluru.

Union Minister of Power Manohar Lal underscored the need for a future-ready, financially sustainable and modern power sector to drive India’s economic growth while speaking during the Regional Power Sector Conference for Southern States and Union Territories held in Bengaluru recently. In his keynote address at the event, the Minister emphasised the importance of continuous cooperation between the Centre and States to achieve the vision of Viksit Bharat by 2047. He called for joint efforts in addressing regional challenges and advancing reforms to ensure energy security and sustainability.

Highlighting the urgency of resource adequacy, Manohar Lal urged States to proactively plan for necessary power generation capacity, including nuclear power and maintain a balanced generation mix. He also called on States to resolve intra-state transmission bottlenecks, particularly Right of Way (RoW) issues by adopting Central guidelines and leveraging the ₹1.5 lakh crore, 50-year interest-free loan scheme announced in the Union Budget 2025–26.

In a major push for renewable energy, the Minister encouraged all States to submit proposals for the Green Energy Corridor Phase-III (GEC-III), and to promote renewable energy paired with storage solutions to ensure reliability and fulfill India’s global climate commitments under the UNFCCC.

On the financial front, Manohar Lal raised concerns about the distribution sector which remains the most critical yet vulnerable link in the power value chain. He identified issues such as poor tariff structures, delays in government dues and subsidies, and sub-optimal billing and collection practices. He urged States to engage with Electricity Regulatory Commissions (ERCs) for cost-reflective tariffs and timely true-up orders, noting that utility losses today result in higher consumer costs in the future.

He directed States to accelerate infrastructure and smart metering works under the Revamped Distribution Sector Scheme (RDSS). Emphasising the benefits of prepaid smart meters, he instructed States to complete their installation in all government buildings and colonies by August 2025, and for commercial, industrial, and high-load consumers by November 2025.

“Smart meters have the potential to revolutionise consumer-utility interactions through AI/ML-powered data analytics,” the Minister noted, highlighting the broader digital transformation in the sector.

The Union Power Secretary echoed the Minister’s concerns, stating that States must secure long-term generation tie-ups as per resource adequacy plans up to FY2035 and expand inter- and intra-state transmission networks through mechanisms such as Tariff-Based Competitive Bidding (TBCB), Regulated Tariff Mechanism (RTM) and asset monetisation. He also stressed the need for robust cyber security protocols to safeguard the power infrastructure.

Karnataka Energy Minister K. J. George welcomed dignitaries and shared the State’s efforts to improve power quality and reliability. He expressed gratitude for the Centre’s support and requested further assistance for strengthening distribution and transmission infrastructure in Karnataka.

Union Minister of State for Power and New & Renewable Energy, Shripad Naik, praised the sector’s progress over recent years but pointed out the pressing need for improving financial viability and resource adequacy. He urged States to expedite implementation of PM-KUSUM and finalise Power Purchase Agreements (PPAs) within the next seven months.

The conference witnessed participation from senior power officials, including the Energy Ministers of Telangana, Tamil Nadu, Puducherry, and Andhra Pradesh, along with CMDs of central and state utilities. The forum served as a vital platform for collaborative dialogue aimed at strengthening the power sector across southern India.