India Accelerates Power Distribution Digitalization With Smart Meters And Grid Modernization

The Government of India is taking several steps to modernize and digitalize the country’s power distribution sector, with a focus on improving infrastructure, reducing losses, expanding smart metering, and strengthening the use of digital technologies by distribution companies (DISCOMs).

In a written reply in the Rajya Sabha, Union Minister of State for Power Shripad Naik highlighted the major initiatives being implemented by the central government to support state-owned and private power distribution utilities. While electricity distribution is primarily managed by state governments and state electricity regulatory commissions, central schemes provide financial and technical support for improving the sector.

The key initiative is the Revamped Distribution Sector Scheme (RDSS), launched in July 2021. Under the scheme, projects worth around ₹1.53 lakh crore have been sanctioned for loss reduction infrastructure, while another ₹1.31 lakh crore has been approved for smart metering.

The smart metering programme is expected to cover about 19.79 crore electricity consumers, 2.05 lakh feeders, and more than 52.53 lakh distribution transformers. The government is also supporting advanced digital systems. Around ₹2,627 crore has been allocated for Supervisory Control and Data Acquisition (SCADA) and Distribution Management Systems across 394 towns. Another ₹3,999 crore has been approved for Information Technology and Operational Technology upgrades, including Enterprise Resource Planning and Geographic Information System mapping.

Special smart distribution projects worth ₹8,608 crore have also been sanctioned for seven major cities. These projects include underground cabling, transformer health monitoring and other measures aimed at modernizing urban electricity networks. Since the financial year 2022–23, the government has released ₹47,124 crore under RDSS across 28 states and 45 distribution utilities.

The current digitalization drive builds on earlier programmes. The Integrated Power Development Scheme, launched in December 2014 and completed in March 2022, implemented infrastructure and information technology works worth ₹58,686 crore. It enabled real-time data acquisition systems in more than 1,400 towns and supported the installation of over 6.5 lakh smart meters.

The National Smart Grid Mission, established in 2015 and completed in March 2024, focused on smart grid planning, capacity building and pilot projects. More than 1.6 lakh smart meters were installed under the mission in areas including Rajasthan and Chandigarh.

The Ministry of Power has also introduced the concept of the India Energy Stack to create a standardized digital framework for secure and seamless data exchange across the power sector.

Alongside infrastructure and technology, the government is focusing on workforce development. Under RDSS, ₹100.9 crore has been earmarked for training DISCOM employees in digital technologies and modern grid management, with nearly 15,000 personnel already trained.

These initiatives are expected to support more efficient power distribution, better monitoring, improved consumer services and a more resilient and digitally connected electricity grid.