The Telangana government has announced a major ₹1,300 crore project to install smart meters at the distribution transformer level across the state. The initiative aims to improve transparency and accuracy in measuring electricity consumption, particularly in the agricultural sector, which receives free power.
Currently, the state spends nearly ₹10,000 – 12,000 crore every year on power subsidies for farmers. However, electricity usage figures are largely based on estimates rather than actual measurements. The new smart meter system is intended to provide real consumption data, helping the government better manage subsidies and reduce losses.
Key Details of the Project
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Smart meters will be installed at around 5.22 lakh distribution transformers across Telangana
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The meters will track total electricity consumption instead of metering individual farm connections
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This will help identify Power losses, Misuse and Demand patterns
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The project cost is estimated at ₹1,300 crore
New Power Distribution Company
To support this reform, the state has created a third power distribution company (DISCOM). Nearly 29 lakh connections, including agricultural pumps, lift irrigation systems, and rural water supply schemes, have been transferred to this new entity.
The new DISCOM is expected to begin operations from April 2026. It will also manage large financial adjustments, including pending government dues and payments to power generation companies, which officials say will be handled through accounting mechanisms.
Why the Project Matters
Officials believe the transformer level smart metering will:
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Improve transparency in subsidy accounting
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Help in better power planning and budgeting
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Reduce electricity losses
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Strengthen the overall financial health of the power sector
The government says this approach modernizes the electricity system without placing a direct burden on farmers, as individual agricultural connections will not be metered.
