Chennai:A global tender floated by the Tamil Nadu Power Distribution Corporation for procuring smart electricity, under the Union Government’s revamped electricity distribution sector scheme, has been cancelled as the price quoted by the lowest bidder Adani Energy Solutions Ltd (AESL) was found to be on the higher side.
The tenders were floated as four packages in August 2023 and AESL was the lowest bidder for package 1 that was for installing over 82 lakh smart meters in eight districts, including Chennai, and involved installation of over 82 lakh smart meters, a source said, adding that the cancellation happened on December 27, 2024.
A re-tender is likely to be floated as the tenders for three other packages were also cancelled.
The reason behind the cancellation of the tenders for all the four packages was because AESL that initially quoted Rs 120 for a single phase meter and Rs 169 for a three phase meter as per meter per month charge for operation and maintenance and then brought the rates down to Rs 96 and Rs 139 had quoted Rs 70 and 120 for similar meters in Puducherry.
Also the government's move is reported to have come in the wake of the controversy surrounding the group’s promoter Gautam Adani over allegations of being part of a scheme to pay over USD 250 million (about Rs 2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts.
The Union Government has directed all electricity distribution companies to complete the tender process by March 2025 and begin installation without delay. Failure to implement the smart meter project on time could lead to the conversion of the subsidy provided under the scheme into loans.
