Chennai, Dec 2 (IANS): Tamil Nadu Generation and Distribution Company (Tangedco), the power utility of the state would soon be floating tenders for the installation of smart meters across the state.

Sources in Tangedco told IANS that the financial costs would be borne by the power utility and consumers will not be burdened with this. The project will be commissioned under the central government's Revamped Distribution Sector Scheme (RDSS). The tenders are likely to be floated by December 15.

Tamil Nadu has received Rs 10,790 crore from the central government for the RDSS scheme. Sources in the Tangedco told IANS that the senior officers of the power utility were discussing the intricacies of the tender with the state government officials. The RDSS is aiming to reduce technical and commercial losses across the country by 12-15 per cent in 2024-25.

According to the RDSS scheme, it is mandatory to float tenders for the central government to commence funding and according to officials with the Tangedco, Rs 8,600 crore would be sanctioned as the first tranche of money.

Tangedco has 3.25 crore consumers of which 22.87 lakh are agriculture consumers and 9.75 are consumers below the poverty line or consumers living in huts.

Tangedco has already installed postpaid smart meters in Thiagaraja Nagar, Chennai but needs a policy decision to convert these smart meters into pre-paid ones.

Tamil Nadu power minister, Senthil Balaji told the media persons that with the installation of smart metres, the power losses will be much reduced.