The Odisha government has approved a Rs 735 crore one-time grant to directly fund the installation of smart electricity meters across the state for the financial year 2025–26.
This Cabinet decision, followed by a notification from the Energy Department, marks a major step toward modernising the state’s power infrastructure.
Under the scheme, smart meters will be installed for electricity consumers with contract demand (CD) up to 2 kW. The plan covers both the replacement of existing non-smart meters and the installation of new connections. Moreover, while the assets will belong to the Energy Department, the respective DISCOMs—TPCODL, TPNODL, TPSODL, and TPWODL—will operate and maintain them.
8.75 Lakh Meters to be Replaced
Officials confirmed that 8.75 lakh existing non-smart meters will be replaced at an estimated cost of Rs 340 crore. In addition, 2.78 lakh new electricity connections will receive smart meters, with ₹88 crore earmarked for this purpose. Consequently, the total capital expenditure for installation will stand at Rs 428 crore.
Meter Rent Abolished
The government allocated the remaining Rs 307 crore to cover unrecovered costs of smart meters already installed up to March 31, 2025. As a result, from April 1, 2025, consumers with a CD of up to 2 kW will no longer pay meter rent. This follows the Odisha Electricity Regulatory Commission’s tariff order dated March 24, 2025. Furthermore, the government clarified that consumers who had smart meters installed before March 2025 will also be exempt from rent charges.
Revenue and Accountability
Revenue generated from scrap of replaced meters will be treated as non-tariff income under OERC regulations. Additionally, DISCOMs must submit utilisation certificates based on the actual number of meters installed and costs incurred, ensuring transparency and accountability in the process.
