GMR Secures ₹2,128 Crore IREDA Loan for Uttar Pradesh Smart Meter Project

9 Jan 2025 , 04:16 PM

GMR Power and Urban Infra Ltd (GPUIL) secured approval from IREDA (Indian Renewable Energy Development Agency Limited) to partially fund a large scale smart metering installation project for Uttar Pradesh. The project shall include the installing and maintaining of 75.69 lakh smart meters in crucial zones like Varanasi, Azamgarh, Prayagraj, Mirzapur, Agra, and Aligarh.

The total project cost is estimated at ₹3,467.02 crore and has Bosch Global Software Technologies Pvt. Ltd. as a technical partner. GPUIL bagged the contract way back in September 2023, and emphasizes strategic focus on modernizing power infrastructure.

IREDA sanctioned a project loan of ₹2,128 crore, which will be released to three SPVs formed for the project: GMR Agra Smart Meters Ltd, GMR Kashi Smart Meters Ltd, and GMR Triveni Smart Meters Ltd. GPUIL has provided corporate guarantees of ₹440 crore each to the SPVs until the COD and will provide additional guarantees once the shareholder approval is received for related-party transactions.

The project shall be funded in debt, equity, and through internal accruals for achieving financial sustainability. This scheme has been envisioned as a step in the government’s plan to ensure efficiency in the energy sector with the reduction in power distribution losses, accuracy in billing, and usage of advanced metering infrastructure.

Smart meter rollout is meant for real-time power consumption monitoring with increased operational efficiency and customer satisfaction. GPUIL explained that there is no direct interest on the part of the promoter in the project as group companies are involved.