Uttar Pradesh Discom Cancels Adani's Bid For Rs 5,400-Crore Smart Meter

Despite submitting the lowest bid by Adani Group, Madhyanchal Vidyut Vitran Nigam cancelled the bid citing “unavoidable reasons”

Four discoms in UP — including Madhyanchal, Dakshinanchal, Purvanchal, and Paschimanchal — representing different regions, had floated tenders for the supply of more than 25 million smart meters. ( Image Source :Getty )

Madhyanchal Vidyut Vitran Nigam (MVVNL), a power utility firm of Uttar Pradesh (UP), has scarped Adani Group’s bid for supply of around 7.5 million smart meters to the discom worth about Rs 5,400 crore.

Four power firms (discoms) in UP — including Madhyanchal, Dakshinanchal, Purvanchal, and Paschimanchal — representing different regions in the state, had floated tenders for the supply of more than 25 million smart meters. The combined bid value was estimated at Rs 25,000 crore, according to news reports.

Despite submitting the lowest bid by Adani Group, Madhyanchal Vidyut Vitran Nigam cancelled the bid citing “unavoidable reasons”. Apart from Adani, GMR, L&T and Intellismart Infra were also in the fray for the project. Intellismart Infra is a joint venture company of Energy Efficiency Services (EESL) and National Investment and Infrastructure Fund (NIIF).

Adani had quoted a price of Rs 10,000 per smart meter, which was the lowest. This was allegedly deemed steeper, considering the cost of Rs 6,000 per meter, under the standing billing guideline of Rural Electrification Corporation.

MVVNL had invited the e-tender for the appointment of an Advanced Metering Infrastructure (AMI) service provider for smart prepaid metering in MVVNL. In its notification dated February 4, MVVNL said, “The tender has been cancelled due to unavoidable reasons.”

Now, the discom is likely to opt for a fresh tendering process. Even other UP discoms could tread a similar line, taking a cue from MVVNL.

Interestingly, none of the four private companies in the fray are manufacturers of smart meters. They would have probably sublet the manufacturing after winning the contract.

Meanwhile, UP power consumers’ forum had already challenged the bids before the UP Electricity Regulatory Commission (UPERC). They alleged that steep prices were quoted for the smart meters.

Forum President Avadhesh Kumar Verma claimed that the bidding would stoke privatisation of the state energy sector through the back door. He alleged that it was for the first time that none of the bidders were original manufacturers of smart meters.