The Race to Build India’s Smart Metering Infrastructure

The acquisition of IntelliSmart Infrastructure by Adani Energy Solutions for Rs. 3,050 crore signifies that large players in the infrastructure sector are developing interest in India’s smart-metering market. This acquisition is part of the overall evolution in the electricity distribution sector as government-driven modernization opens avenues to businesses wanting to emerge as long-term infrastructure players.

Historically, India’s electricity distribution sector has been plagued by high levels of technical and commercial losses, poor billing, and harassment in revenue collections. Use of smart meters is expected to help tackle these issues through real-time consumption tracking, enhanced billing, and improved demand-supply management.

The country’s government is supporting this transition by the Revamped Distribution Sector Scheme (RDSS), which includes a massive smart-metering program. The need to invest heavily in smart meters has created many opportunities for infrastructure companies, technology companies, and metering companies.

That being said, in June 2026 Adani Energy Solutions announced its decision to acquire 100% of IntelliSmart, which was a collaboration between the National Investment and Infrastructure Fund (NIIF) and Energy Efficiency Services Limited (EESL).

IntelliSmart has a portfolio of more than 2.2 million smart meters across five states. The acquisition is expected to take Adani Energy Solutions’ total smart-metering portfolio to more than 4.7 million meters, including existing orders. The Competition Commission of India approved the transaction on October 30, 2026, subject to customary closing conditions. The acquisition highlights how established infrastructure companies are positioning themselves to participate in India’s electricity distribution transformation

The Market Taking Shape

In accordance with the Advanced Metering Infrastructure Service Provider (AMISP) mechanism, businesses are accountable for the implementation and usage of the smart metering infrastructure. The investments made by businesses are returned through the surplus being related to the amount of operational meters during the specified period.

 This approach provides an opportunity to have regular income in the long-term perspective, and therefore, this supports attraction of big companies with required financial resources to deal with huge infrastructure projects.

Established energy companies are offered a chance to increase their share of electricity distribution value chain with the help of advanced metering technologies. Experience in the implementation of power infrastructure projects can turn out to be beneficial when competing for big contracts.

Why scale matters

The sector requires significant upfront investment, access to financing and the ability to execute projects across multiple states. Companies must procure meters, establish communication infrastructure and maintain service standards throughout the contract period.

This makes scale an important competitive advantage. Larger portfolios can help companies improve procurement terms, distribute technology and administrative costs across more meters and build stronger operational networks.

Adani Energy Solutions’ acquisition of IntelliSmart reflects this strategy. By acquiring an established platform, the company can expand its portfolio and strengthen its position in future project opportunities rather than depending entirely on organic growth.

However, a larger portfolio does not automatically guarantee better returns. Companies must ensure that contracts translate into operational meters and consistent payments.

Inside the Business Model

The commercial attractiveness of smart metering depends on how effectively companies recover their initial investments and manage recurring expenses. Under the Design-Build-Finance-Own-Operate-Transfer (DBFOOT) model, service providers finance and develop the metering infrastructure before recovering their investment through payments over the contract period.

According to Arindam Ghosh, Partner-Energy Consulting at Nangia & Co LLP, realised rates generally range between Rs. 10 and Rs. 14 per meter per month. The payments are designed to cover installation investments, operating and maintenance expenses, communication and cloud infrastructure costs, financing charges and the service provider’s returns. Ghosh estimates that capital expenditure accounts for around 30% of total costs, while operating expenditure makes up the remaining 70%.

This means that profitability depends not only on winning contracts but also on installation efficiency, operational performance and cost management.

The Risks Behind the Opportunity

Though the promise of the new project is apparent, a major hurdle still exists in the form of the lag time between project approvals and actual installs. Hurdles such as procurement delays, bottlenecks in installations, and other issues of implementation at the level of government can all impede the process of turning contracts in to working operational assets.
One other major concern is the delays in payments from distribution companies. As always, service providers depend on these contractual payments to be able to recover investments so any delays in this connection will only lead to an increase in working capital and decrease effects of investment.
Thus, the financial state of distribution companies is of utmost importance for the commercial state of the industry.

What Lies Ahead for the Industry

India’s smart metering initiative is opening up a significant infrastructure opportunity for companies looking for recurring revenue. Adani Energy Solutions’ purchase of IntelliSmart signifies that scale is becoming more Central in the sector. Successful operations in the sector will hinge on how quickly installations take place, how well projects are executed, and whether discoms make timely payments for them. Better-capitalized and more capable companies will be able to turn government-imposed targets into functioning assets and returns.