Genus Power Infrastructures Ltd has teamed up with an affiliate of Singapore-based investment firm GIC to set up a platform to fund smart metering projects.
In a media release, Genus said that it has signed definitive agreements with Gem View Investment Pte Ltd, an affiliate of GIC, Singapore for setting up of a platform for undertaking Advanced Metering Infrastructure Service Provider (AMISP) concessions.
GIC will hold 74 per cent stake while Genus will hold the remaining 26 per cent stake in the platform. The partners have committed to an initial pipeline with a capital outlay of around $2 billion. Genus would be the exclusive supplier to the platform for smart meters and associated services.
The agreement between Genus and Gem View will also cover investment by Chiswick Investment Pte Ltd, an affiliate of GIC, of up to Rs.519 crore by way of a preferential allotment of warrants which shall constitute (if and when GIC elects to exercise such warrants) 15 per cent of the issued and paid-up share capital of Genus on a fully diluted/as converted basis.
Largest smart metering transaction
This represents the largest transaction in the smart metering space in the country and positions Genus at the forefront of the smart metering revolution underway in the country. With these transactions, Genus would supplement its manufacturing and execution prowess with access to capital. Genus will scale up the deployment of energy “smart meters” across India, supporting energy security and transition through grid optimization and efficiency, the release noted.
Long-term investor
Speaking on the development, Jitendra Kumar Agarwal, Joint Managing Director, Genus, said, “We are delighted to have a long-term investor like GIC choosing Genus as its exclusive partner in the sector. GIC’s investment attests to the strong prospects of smart metering space, our manufacturing prowess and execution track record. We look forward to contribute to India’s sustainability goals by facilitating efficient use of energy envisioned under the Time of Day metering recently announced by Government of India”.
Also read: Genus Power Receives AMI Mandate Worth Over Rs.2,000 Crore
RDSS
The Genus release said that India is implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme (RDSS), with a plan to install 250 million meters by 2025 with an estimated investment of $30 billion.
With technical and commercial losses exceeding 15 per cent for all major Indian utilities leading to high financial losses, smart metering projects under the RDSS scheme are conceptualised to reduce such losses, improve operational efficiency of discoms and improve their financial sustainability by providing results linked financial assistance.
Smart meters are also at the core of operationalizing the recently announced Time of Day (ToD) metering recently announced. AMISP concessions are awarded by various state utilities under RDSS with a concession life of up to ten years and concessionaires receive a monthly service charge during this period for installing and maintaining meters and the associated infrastructure, the release explained.
