The Tamil Nadu Generation and Distribution Corporation (Tangedco) has cancelled its global tender for smart meter procurement under the Revamped Distribution Sector Scheme (RDSS), which aimed to install over 8.2 million smart meters across the state. This decision comes as a setback for Adani Energy Solutions Ltd. (AESL), which had emerged as the lowest bidder for one of the four packages covering eight districts, including Chennai, Kancheepuram, and Chengalpattu.
Key Developments:
- Reason for Cancellation: Tangedco cited the high costs quoted by AESL as “unacceptable” despite attempts to renegotiate the terms.
- Scope of Project: The Rs 19,000 crore RDSS scheme, funded by the Centre, excludes agricultural electricity connections.
- Tender Status: All four tenders issued in August 2023 have been cancelled due to “administrative reasons,” with plans to reissue them soon.
Broader Context:
The decision adds to a challenging period for Gautam Adani and the Adani Group. In 2024, Gautam Adani faced allegations from US prosecutors of involvement in a $265 million bribery scheme to secure favourable solar power contracts. However, the Adani Group has refuted these allegations, calling them “incorrect” in a November 2024 filing with Indian stock exchanges.
The cancellation of the Tamil Nadu smart meter tender underscores the ongoing scrutiny and challenges facing the conglomerate in both domestic and international markets.
