In an apparent setback for the Adani Group, the DMK-led Tamil Nadu government has cancelled its global tender for procurement of smart meters despite the Adani Energy Solutions Ltd (AESL) emerging as the “lowest bidder” for it.
The Tamil Nadu Power Distribution Corporation (TNPDC) has cancelled a global tender floated for procuring smart meters, citing the high cost quoted by Adani Energy Solutions Ltd (AESL).
The tenders were floated as four packages in August 2023 for providing the smart meters under the central government's revamped distribution sector scheme.
AESL was the lowest bidder for package 1 of the tender covering eight districts, including Chennai, and involved installation of over 82 lakh smart meters.
This package alone involved the proposed installation of over 8.2 million smart meters under the Centre-funded Rs 19,000 crore Revamped Distribution Sector Scheme (RDSS), which is envisaged for installing smart meters for all electricity connections in the state barring the agricultural ones.
The tender was cancelled on December 27, 2024, as the cost quoted by AESL was reportedly higher. All four tenders, floated in August 2023, have been cancelled, including those for the remaining three packages covering other districts. A re-tender is likely to be floated.
The government’s move comes in the wake of the controversy surrounding industrialist Gautam Adani, promoter of the Adani Group over allegations of being part of a scheme to pay over $250 million (about Rs 2,100 crore) bribe to Indian officials in exchange of favourable terms for solar power contracts.
US prosecutors had indicted Adani and some others in connection with the matter. The company has refuted the allegations.
Earlier Tamil Nadu Chief Minister MK Stalin denied any association with industrialist Gautam Adani and challenged BJP and its ally, the Pattali Makkal Katchi (PMK), to agree to a Joint Parliamentary Committee (JPC) probe into the Adani issue.