Tamil Nadu: Tamil Nadu government cancels smart meter tender given to Adani Energy Solutions, gives this reason

The Tamil Nadu Electricity Distribution Corporation has cancelled the global tender issued to procure smart meters citing high cost quoted by Adani Energy Solutions Ltd (AESL). The tenders were issued in August 2023 as four packages to provide smart meters under the central government’s Revived Distribution Sector Scheme.

AESL, a BSE-listed company, had quoted the lowest bid for Package 1 of the tender that covered eight districts, including Chennai, and involved installation of over 82 lakh smart meters, a source said.

The tender was cancelled on December 27, 2024, as the cost quoted by AESL was reportedly high. He said a re-tender is likely to be issued. He said that tenders for three other packages have also been cancelled, without giving details.

The government’s move comes in the wake of a controversy involving industrialist Gautam Adani, promoter of the Adani Group. He is accused of being part of a scheme to pay bribes of more than US $ 250 million (about Rs 2,100 crore) to Indian officials in exchange for favorable terms for solar power contracts. US prosecutors had charged Adani and some others in connection with the case. The company has denied the allegations.