The Tamil Nadu Power Distribution Corporation has annulled a global tender issued in August 2023 for procuring smart meters, citing the high cost proposed by Adani Energy Solutions Ltd (AESL). The tender was divided into four packages under the central government’s revamped distribution sector scheme.

According to sources, AESL, a publicly listed company on the BSE, emerged as the lowest bidder for the first package. This package covered eight districts, including Chennai, and involved the installation of over 8.2 million smart meters. However, the tender was cancelled on December 27, 2024, due to the reportedly high cost quoted by AESL. Tenders for the remaining three packages were also cancelled, though no additional details were provided.

A re-tendering process is expected to take place. The decision to cancel the tenders occurs amidst ongoing controversy involving Gautam Adani, the promoter of the Adani Group. Allegations have surfaced accusing Adani of being involved in a scheme to pay bribes amounting to over $250 million (approximately ₹2,100 crore) to Indian officials in exchange for favorable terms in solar power contracts.

The accusations, brought forward by US prosecutors, have resulted in indictments against Adani and several others. However, the Adani Group has denied all allegations. The cancellation of the tender and the potential re-tendering reflect the state’s concern over costs and the broader controversies surrounding the Adani Group.