Seven companies including L&T were invited for the reverse auction, according to the tender terms and conditions where L&T was outbid by ITI Limited, Genus Power and KEONICS
New Delhi: India's state-owned Energy EfficiencyServices Limited (EESL) on Tuesday announced it has achieved further price reduction in the procurement of 5 million smart meters – the world’s largest such programme -- through a reverse auction conducted last week.
Delhi-based ITI Limitedemerged as the lowest bidder in the reverse auction followed by Genus Powerand KEONICS, EESL said. ITI Limited quoted the lowest price of Rs 2,503 per single phase smart meter.
“Through the reverse auction, the price of the single-phase smart meter has come down from Rs 2,722 to Rs 2,503 which is a reduction of 8 per cent from the previous tender quote,” EESL said. The meters will be installed over a period of three years in a phased manner in Uttar Pradesh and Haryana.
Power equipment giant L&T had emerged as the lowest bidder in the first round of bids conducted last week by quoting Rs 2,722. The lower price discovered through reverse auction will further benefit the end consumers, the statement said.
Seven companies including L&T were invited for the reverse auction, according to the tender terms and conditions where L&T was outbid by ITI Limited, Genus Power and KEONICS.
As per government guidelines, EESL will now 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,” EESL said.
The company also informed 4 million smart meters will be deployed in UP and the remaining 1 million in Haryana, making it the world’s largest smart meter procurement. Smart meters are part of the overall Advanced Metering Infrastructure Solutions (AMI) aimed at better demand response designed to reduce energy consumption during peak hours.
The overall AMI solution will also have a system integrator who will be responsible for meter installation, data storage on cloud and preparing dashboards. The bids for the system integrator are expected to open on 31 October.
“EESL is procuring the smart meters and services of the system integrator with 100 per cent investment and the utilities will make zero-investment. The repayment to EESL will be through savings resulting from enhanced billing efficiency, avoided meter reading costs, etc,” EESL said, adding that the installation of the smart meters will help avoid the average cost of meter reading of Rs 40 per meter.
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