Union Minister of State for Power Shripad Naik recently informed Parliament in a written reply that, as of June 30, 2026, the total number of smart meters installed across the country had reached 7.24 crore. Of these, 5.73 crore meters were installed under the Revamped Distribution Sector Scheme (RDSS), while the remaining meters were installed under the National Smart Grid Mission (NSGM). The scheme, launched in 2021, was originally scheduled to be completed by March 2026. However, with only 28.2% progress so far, the Centre has extended the RDSS deadline by two years, taking its sunset date to March 31, 2028.

Installing Meters Is No Easy Task

A smart meter is not simply a matter of removing an old meter and installing a new one. Behind it lies an entire ecosystem involving meter procurement, tendering, vendor selection, communication networks, Advanced Metering Infrastructure, Head-End Systems, Meter Data Management Systems, billing integration and field-level installation.

According to the Centre, the initial stages involved delays in preparing the model RFP. There were also delays in establishing test beds, empanelment of vendors, tendering and work allocation by DISCOMs, board approvals, contracts and DDF agreements. Implementation challenges were also encountered under the PPP model. In other words, the ability to procure meters and the field capacity to install millions of meters in households are two very different things.

The Doorstep Is the Real Challenge

One of the least discussed but biggest challenges in smart metering is consumer acceptance. In some states, consumers have expressed concerns that their electricity bills would increase after the installation of smart meters or that prepaid systems would be imposed. Where consumer engagement has been inadequate, resistance or distrust towards meter replacement can slow down the rollout. In Gujarat, for instance, consumers had for a long time resisted smart meter installation due to concerns over high electricity bills.

The government is therefore now focusing not only on “meter installation”, but also on “consumer confidence” as part of the rollout. Measures include bill rebates for prepaid smart meters, no penalty based on maximum demand recorded by the smart meter, easier instalment-based recovery of old electricity dues and check meters to increase consumer confidence in meter accuracy.

In fact, installing the meter does not mean smart metering has actually begun.

The meter’s data must reach the DISCOM’s backend. It must be integrated with the Meter Data Management System and connected to the billing system. Consumers must also be able to access their consumption data through an app or other platforms. Therefore, the success of smart metering will be determined not by the hardware alone, but by the entire digital ecosystem.

Gujarat at 31.14% Progress

The gap is also significant in Gujarat. Under RDSS, more than 1.67 crore smart meters have been sanctioned for the state, while 52.01 lakh meters had been installed as of June 30, 2026.

That means Gujarat too has installed only around one-third of its sanctioned target.

However, Gujarat energy officials argue that a smart meter is not merely a monitoring device for the DISCOM. Consumers can also benefit. Through mobile applications, features such as consumption data, recharge, low-balance alerts, and consumption patterns can help consumers manage their electricity usage more effectively.

This explains the real meaning of a smart meter—it is no longer merely a device that tells consumers “how much electricity was consumed?” It is becoming a data platform that tells them “when, how much, and how electricity was consumed.”

Centre Turns Up The Heat On Rollout

Under RDSS, smart metering work is monitored by nodal agencies such as PFC and REC. At the state level, a Distribution Reforms Committee headed by the Chief Secretary has been created, while an Inter-Ministerial Monitoring Committee headed by the Secretary, Power, reviews the programme at the central level.

This monitoring architecture shows that the Centre’s concern is no longer simply sanctioning schemes. The focus is now on ensuring that sanctioned projects are completed on the ground.

That is why smart meter rollout is increasingly moving beyond a routine energy department procurement exercise and becoming a high-level administrative priority.

No Consumer Will Be Left Out Now!

Central Electricity Authority (CEA) Secretary Rakesh Kumar has stated in a gazette notification that all electricity consumers in areas where communication networks are available will have to be covered under smart metering within the timeline prescribed by the Central Government. The CEA has amended the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006, under the powers conferred by the Electricity Act, 2003.

Under the new provisions, connections with higher current capacity will have to be equipped with Automatic Remote Meter Reading (AMR) or Smart Meters. In areas without communication networks, prepaid meters may be installed with the approval of the State Electricity Regulatory Commission. The regulations also make prepaid functionality and interoperability mandatory in Advanced Metering Infrastructure.

Following the notification, the Under Secretary of the Ministry of Power, in a letter to the Chief Secretaries of all states, clarified that under the Central Electricity Authority (Installation and Operation of Meters) (Amendment) Regulations, 2026, all electricity consumers must be brought under smart metering within the prescribed timeline.

According to an IBEF report, the success of smart metering in India depends on the quality of the data management system it has the potential to provide. “The continued evolution of the regulatory environment, consumer participation, and investment in digital technology will determine the potential of the energy sector to fully transition into a digital energy service provider,” it said.

But One Question Still Remains

Smart meters will provide DISCOMs with consumption data. Billing efficiency can improve. Collection efficiency can increase. Losses can potentially be reduced. But if consumers feel that all they have received is a digital meter, without any improvement in electricity costs, billing transparency or grievance redressal, the purpose of the technology will remain incomplete.

The next battle over smart metering will therefore not simply be meters versus consumers, but technology versus execution.

And there is an even bigger question: Can the government convince millions of electricity consumers that smart meters are not against them, but for them?

Because installing the meters on time, connecting them to the system, and winning consumer trust are equally important. If all three fail, the Smart Meter Mission could remain little more than a massive procurement number.

Rebate, ToU Benefits & Other Reforms

Pankaj Panchal, former Joint Secretary in the Energy and Petrochemicals Department, told The Secretariat that consumers initially resisted smart meters due to concerns over higher electricity bills, but subsequent reforms have encouraged greater adoption. In particular, the rebate available on energy charges has been increased and the scope of Time of Use (ToU) discounts has been expanded. Earlier, the benefit was available only to consumers with prepaid billing. Now, postpaid smart meter consumers in categories including RGP, GLP, NRGP, LTMD and LT EV Charging Stations will also be eligible.

Consumers initially resisted smart meters due to concerns over higher electricity bills, but subsequent reforms have encouraged greater adoption

- Pankaj Panchal, former Joint Secretary in the Energy and Petrochemicals Department

In addition, measures include no penalty based on the maximum electricity demand recorded by the smart meter, recovery of old electricity dues through easy instalments, and installation of check meters to enhance consumer confidence.

Trust Deficit With Smart Meters

Energy expert and GERC specialist Yudhishthir Gohil told The Secretariat that “DISCOMs should have educated consumers about the benefits of smart meters. Instead, they began installing smart meters with a prepaid option without allowing the previous billing cycle to be completed, creating confusion and difficulties among consumers. Surprisingly, the companies increased the discontent by installing meters among lower- and middle-income consumers while making prepaid mandatory. On the other hand, weak network signals and the large volume of data generated by smart meters also emerged as bottlenecks.”

Suggesting measures to the government, he said that “if the project is to be brought back on track, the postpaid facility should continue, monthly billing should be offered, and consumers who opt for the prepaid option should be given a rebate on their bill, including fixed charges. Now, if the target has to be achieved by the second deadline of March 2028, as many as 6.5 lakh meters will have to be installed every day, a pace that is almost impossible to sustain. To address this situation, it is necessary to make “emergency credit” mandatory and streamline financing through direct-debit escrow accounts.