The International Finance Corporation (IFC) has proposed investing up to $200 million to support the rollout of 13.6 million smart electricity meters in India’s Rajasthan state, backing a large-scale effort to modernise the country’s power distribution network.
The proposed financing would support nine special purpose vehicles (SPVs) sponsored by Gemstar Infra Pte Ltd, a joint venture between a unit of Singapore sovereign wealth fund GIC and Indian smart metering firm Genus Power Infrastructure Ltd, according to an IFC project disclosure seen by DevFiNews.
IFC also expects to mobilise up to 20.1 billion Indian rupees ($222 million) from parallel lenders, bringing the potential debt package to about $422 million for the project, which has an estimated total cost of around $800 million.
The financing will support the installation, operation and maintenance of smart meters across three electricity distribution companies in Rajasthan: Jaipur Vidyut Vitran Nigam Ltd, Ajmer Vidyut Vitran Nigam Ltd and Jodhpur Vidyut Vitran Nigam Ltd.
The project forms part of India’s Revamped Distribution Sector Scheme (RDSS), a reforms-based programme launched by the federal government to improve the operational and financial performance of electricity distribution utilities through infrastructure upgrades and private sector participation.
Gemstar Infra was established in 2023 by Gem View Investment Pte Ltd, a wholly owned subsidiary of GIC Infra Holdings, and Genus Power to develop and operate smart metering concessions awarded under the RDSS programme.
According to IFC, the deployment of 13.6 million smart meters is expected to improve electricity service quality by reducing aggregate technical and commercial losses while providing utilities and consumers with real-time information on electricity consumption.
The smart meters will be integrated with digital platforms and information technology systems, enabling distribution companies to better manage demand, improve billing accuracy and respond more effectively to consumer needs. The project is also expected to support jobs during the installation phase.
Each concession will be implemented separately by an individual SPV and financed independently without cross-collateralisation.
IFC said it would play a leading role in arranging the debt financing package while providing environmental and social risk management support in line with its performance standards.
The project underscores the growing role of development finance institutions in supporting grid digitalisation, an increasingly important component of energy transition strategies alongside investments in renewable power generation and transmission infrastructure.
India has accelerated the deployment of smart meters under the RDSS programme to improve billing efficiency, reduce electricity losses and strengthen the financial position of state-owned distribution companies, while creating a more digitally enabled grid capable of supporting rising electricity demand and cleaner energy sources.
IFC’s proposed investment remains subject to approval.
Recent Comments