ITI Ltd outbids L&T in reverse auction; bags contract to procure 50 lakh smart meters

Tuesday, October 31 2017

ITI Ltd outbids L&T in reverse auction; bags contract to procure 50 lakh smart meters

EN Correspondent Leave a comment New Delhi: ITI Limited has emerged as the lowest bidder in this reverse auction to procure 50 Lakh smart meters, each costing Rs 2,503, which will be installed in a phased manner in Uttar Pradesh and Haryana over a period of three years. Energy Efficiency Services Limited (EESL) has achieved a further price reduction in the procurement of 50 lakh smart meters by holding a reverse auction of the tender conducted last week. L&T had emerged as the lowest bidder in the first round of bids conducted last week, where the company had quoted Rs 2,722. ITI Limited, however, outbids L&T by quoting the lowest price of Rs 2,503 per single phase smart meter in the reverse auction. ITI Limited is followed by Genus Power and KEONICS. Through the reverse auction the price of the single phase smart meter has come down from Rs 2,722 to Rs 2,503 which is a reduction of eight percent from the previous tender quote. The lower price discovered through reverse auction will further benefit the end consumers. Seven companies including L&T were invited for the reverse auction. As per government guidelines, the EESL, which is under the administrative control of Ministry of Power, will invite Genus Power and KEONICS, who have emerged as the L2 and L3 bidders respectively to match the L1 price. As many as 40 lakh smart meters will be deployed in UP and the remaining 10 lakh in Haryana. Smart meters are a part of the overall Advanced Metering Infrastructure Solutions (AMI) aimed at better demand response designed to reduce energy consumption during peak hours. The overall AMI solution will also have a system integrator who will be responsible for meter installation, data storage on cloud and preparing dashboards.



The meters are being procured for the implementation of smart grid projects in Haryana and Uttar Pradesh since these states have been grappling with huge Aggregate Technical and Commercial (AT&C) losses — the latest figures for both states being 28.42% and 34.36% respectively. Smart meters will not only help these in reducing their AT&C losses by way of increased billing efficiency, but will they also completely change the way in which electrical energy is currently being consumed and paid for by the consumers. Installation of these smart meters along with its associated communication and IT infrastructure will enable the discoms to obtain real time energy consumption data of each consumer for subsequent analysis. The Smart meters procured by EESL use GPRS technology to allow two-way communication between the discom and consumers. Once installed, an energy supplier can read a meter via mobile phone network. A household can also receive a digital display which helps them to access how much power they are consuming – and its cost – in real time. Smart meters enable one to see the consumption pattern and the cost. This means one can adapt the energy use and cut down on waste to provide financial savings to consumers. They further provide an accurate and real-time information about the energy use, enabling one to take informed decisions about their energy behaviour.


EESL is procuring the smart meters and services of the system integrator with 100 percent investment and the utilities will make zero-investment. The repayment to EESL will be done through savings resulting from enhanced billing efficiency and avoided meter reading costs. It is said that the average cost of meter reading is Rs 40 per meter which can be completely avoided. EESL is committed to enabling a complete transformation of the energy infrastructure in the country with unique solutions, the official added. Post navigation