UP discom scraps Adani’s Rs 5,400-crore smart meter bid citing ‘unavoidable reasons’

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By: TNI Team
Updated: 06 February, 2023 9:38 am IST

Uttar Pradesh power utility Madhyanchal Vidyut Vitran Nigam (MVVNL) has cancelled Adani Group’s bid for supply of around 7.5 million smart meters to the power distribution company (discom) worth nearly Rs 5,400 crore.

The discom canceled the bid citing “unavoidable reasons”.

UP discoms — including Madhyanchal, Dakshinanchal, Purvanchal and Paschimanchal — representing different regions, had floated tenders for the supply of more than 2.5 crore smart meters. The combined bid value is worth Rs 25,000 crore.

Apart from Adani, GMR, L&T and Intellismart Infra had placed their bids.

Adani had quoted a price of Rs 10,000 per smart meter, which was the lowest.

This was allegedly deemed high. The cost of smart meters has been fixed at  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.”

The notification signed by Superintending Engineer (Comm.) Madhyanchal Vidyut Vitran Nigam Ltd read, “E-tender invited for the Appointment of an Advanced Metering Infrastructure (AMI) Service Provider for smart Prepaid Metering in MVVNL (U.P.) India on DBFOOT basis. AMISP tender specification number RDSS/0002/2022, NIC tender ID 2022 MVVNL 725623_2 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.

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