Ludhiana: 3 years after deadline, smart meter rollout lags in district, only 20% consumers covered

PSPCL data show that only 2.95 lakh of 14.76 lakh electricity consumers in Ludhiana district had smart meters installed till October this year

More than three years after the Union ministry of power set a 2022 deadline to replace conventional electricity meters with smart meters nationwide, the rollout in Ludhiana district continues to lag, with barely one-fifth of electricity consumers covered so far.

As of the end of October, just 2.95 lakh smart meters had been installed across the district. (HT Photo)

According to data from the Punjab State Power Corporation Limited (PSPCL), only 19.9% of Ludhiana’s 14.76 lakh electricity consumers have been brought under the smart metering system. As of the end of October, just 2.95 lakh smart meters had been installed across the district.

The implementation has been uneven, with urban areas significantly outperforming rural regions. Official records show that urban divisions such as Focal Point, Sunder Nagar and Aggar Nagar have seen the highest number of installations, with each division averaging around 29,000 smart meters.

In contrast, rural subdivisions falling under the Suburban Circle, including Jagraon, Raikot and Ahmedgarh, continue to trail far behind. These areas have recorded an average of only about 9,000 installations per subdivision so far, highlighting a widening urban-rural gap in the execution of the project, officials said.

To push adoption, the power department made smart meters mandatory for all new electricity connections from mid-2023. Additionally, damaged or faulty conventional meters are now replaced only with smart meters. Despite these measures, the pace of installation has remained sluggish.

Officials attributed the slow progress not only in Ludhiana but across Punjab to multiple factors, including the high cost of smart meters, a limited pool of approved vendors, manpower shortages and public resistance to the technology.

Cost remains the most significant hurdle. While a conventional electricity meter costs around ₹680, the procurement cost of a smart meter is nearly ₹3,600. Moreover, smart meters are SIM-based and transmit real-time consumption data to a central cloud server maintained by a third-party vendor, the expense of which is borne by the power department. This pushes the overall cost per smart meter to nearly ₹5,000 — almost eight times that of a conventional meter.

An official noted that billing accuracy between conventional and smart meters is largely comparable. “Given this, the department is prioritising smart meters for new connections and for replacing damaged meters. Replacing all existing conventional meters is financially unviable and does not lead to a significant improvement in output,” the official said.

Senior PSPCL officials said the smart metering programme is being implemented under the Centre’s Revamped Distribution Sector Scheme (RDSS), which provides financial assistance to state power utilities for infrastructure upgrades. One of the key conditions for the release of RDSS funds is the installation of smart and prepaid meters to improve billing efficiency, reduce commercial losses and enhance consumer experience.

Chief engineer Jagdev Hans said opposition from residents and farmers has further slowed progress. “There is a fear that chip-based smart meters will end subsidies and lead to higher monthly bills. This is incorrect. Smart meters allow consumers to monitor their power usage in real time, improving transparency in billing,” he said.

Factors contributing to the delay

High cost: Smart meters cost about ₹3,600 each compared to ₹680 for conventional meters, rising to nearly ₹5,000 with connectivity and data services, making mass replacement unviable.

Limited vendors: A restricted number of approved suppliers has slowed procurement and installation.

Manpower shortage: Insufficient field staff has affected installation and maintenance.

Public resistance: Fears over loss of subsidies and higher bills have reduced acceptance, especially among farmers.

Urban–rural gap: Installations have progressed faster in urban areas, while rural regions lag behind.

Marginal billing gains: Similar billing accuracy to conventional meters has limited urgency for full replacement.

RDSS-linked funding: Implementation depends on central funding conditions, adding procedural and financial constraints.