Energy Efficiency Services Limited (EESL) has achieved a further price reduction in the procurement of 50 lakh smart meters, basis a reverse auction of the tender conducted. ITI Limited has emerged as the L1 bidder with the lowest quote of Rs. 2503 per unit for 50 lakh smart meters, followed by Genus Power and KEONICS. 8% lower price per unit is achieved than previous tender. The total procurement cost of 50 lakh smart meters has been reduced by Rs.132 crores due to reverse auction.
L&T had emerged as the lowest bidder in the first round of bids conducted last week, where the company had quoted Rs. 2722. Through the reverse auction, the price of the single phase smart meter has come down from Rs. 2722 to Rs. 2503 which is a reduction of 8% from the previous tender quote. The lower price discovered through reverse auction will further benefit the end consumers. Seven companies including L&T were invited for the reverse auction, as per tender terms and conditions where L&T has been outbid by ITI Limited, Genus Power and KEONICS.
EESL will invite Genus Power and KEONICS, who have emerged as the L2 and L3 bidders respectively, to match the L1 price. Should the said parties match the L1 price, EESL will split the procurement of the single phase smart meter between three parties in a ratio of 50:30:20. The meters will be installed over a period of 3 years in a phased manner in Uttar Pradesh and Haryana.
The procurement conducted by EESL is the world’s largest single Smart Meter procurement. 40 lakh smart meters will be deployed in UP and the remaining 10 lakh in Haryana. Smart meters are a part of the overall Advanced Metering Infrastructure Solutions (AMI) aimed at better demand response designed to reduce energy consumption during peak hours.