The state government has approved a one-time financial assistance of Rs 735 crore for the installation of smart electricity meters under the Mukhya Mantri Smart Bill Yojana (MMSBY) Phase-I, aimed at accelerating the rollout of smart meters without burdening small consumers.

This scheme will cover consumers with contract demands up to 2 kW and will fund the installation of smart meters for around 2.78 lakh new connections, the replacement of 8.75 lakh non-smart meters, and the cost recovery of meters already installed. The financial support will be provided through the Special Assistance to State for Capital Investment (SASCI) fund for the financial year 2025-26. According to the resolution, while the Energy department will retain ownership of the meters, the distribution companies (Discoms) will be responsible for their operation and maintenance.

This initiative is expected to reduce AT&C losses, improve billing efficiency, and facilitate the integration of renewable energy projects like rooftop solar and PM-KUSUM. “The funds will be passed on to discoms as deferred equity,” the resolution stated.