Madhyanchal Vidyut Vitran Nigam (MVVNL), power utility company in Uttar Pradesh, has rejected Adani Group’s proposal to equip the power distribution company (discom) with around 7.5 million smart metres for a cost of close to Rs 5,400 crore.
Uttar Pradesh power utility MVVNL cancels Adani Group’s bid for supply of 7.5 Million smart meters
Adani Group reportedly made the lowest bid, but the discom rejected it due to “unavoidable reasons.”
For the delivery of more than 25 million smart metres, UP discoms, including Madhyanchal, Dakshinanchal, Purvanchal, and Paschimanchal, representing various regions, released tenders. Estimates put the total bid worth at Rs. 25,000 crore.
Given the cost of Rs 6,000 per metre and the Rural Electrification Corporation’s standing billing guidelines, this was purportedly thought to be more expensive.
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MVVNL invites e-tender for appointment of an Advanced Metering Infrastructure (AMI) service provider
For the purpose of selecting an Advanced Metering Infrastructure (AMI) service provider for smart prepayment metres in MVVNL, the company had issued an e-tender invitation. The tender has been cancelled for unavoidable circumstances, according to MVVNL’s letter from February 4th.
The discom is now likely to choose a new tendering procedure. Even other UP discoms could follow MVVNL’s lead and adopt a similar strategy.
It’s interesting to note that none of the four competing commercial businesses makes smart metres. After securing the contract, they almost certainly would have leased the manufacture.
Before the UP Electricity Regulatory Commission, the UP power users’ forum has already contested the bids (UPERC). They said that the quoted rates for the smart metres were high.
Avadhesh Kumar Verma, the head of the forum, asserted that the bidding will encourage the privatisation of the public energy industry through a back door. He said that none of the bidders were original producers of smart metres, which was a first.
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