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Kerala power unions warn of delayed smart meter rollout jeopardising central funds

The Electricity Employees' Federation of India has urged Kerala's Chief Minister to expedite work orders for Phase II of a smart metering programme, cautioning that further delays could result in loss of central grants and borrowing capacity.

LSN India · 25 October 2026

Kerala power unions warn of delayed smart meter rollout jeopardising central funds

The Electricity Employees' Federation of India (EEFI), an umbrella body of Left-aligned labour organisations, has raised concerns over delays in issuing work orders for the second phase of Kerala's smart metering initiative. In a communication to Chief Minister V.D. Satheesan, the federation flagged that financial bids for the project were opened on September 5, setting a timeline for action.

The union body warned that any further postponement in releasing work orders risks Kerala forfeiting central grants under the Revamped Distribution Sector Scheme (RDSS), a key funding mechanism for power distribution improvements. The delay could also compromise the state's ability to secure additional borrowing space required for infrastructure development, according to the federation's submission.

The smart metering programme aims to modernise Kerala's electricity distribution infrastructure. The second phase represents a critical component of this larger modernisation effort, with implications for both operational efficiency and financial viability of the power sector in the state.

The EEFI's intervention underscores the delicate balance between labour concerns and fiscal pressures facing Kerala's power distribution utilities. The federation's appeal highlights how administrative delays in executing approved projects can have cascading financial consequences, potentially affecting the state's capacity to invest in sector upgrades and meet regulatory compliance requirements under central schemes.