GIC Affiliate, Genus To Set Up Platform For Funding Smart Metering Projects

Genus Power Infrastructures Ltd. has signed a definitive agreement with Gem View Investment Pte—an affiliate of GIC in Singapore—to set up a platform for undertaking advance metering infrastructure service provider concessions in India.

The platform will assist in the rollout of smart metering projects in the country initiated by the Government of India.

GIC will hold 74% of the stake in the venture, while Genus Power will hold the rest, with an initial corpus commitment of $2 billion, according to the company’s statement.

Genus Power will be the exclusive supplier for smart metres and associated services, while GIC affiliate Chiswick Investment Pte will invest up to Rs 519 crore by way of a preferential allotment of warrants, the company said.

This investment will constitute 15% of the paid-up capital of Genus Power if GIC exercises the warrants, the company said.

The transactions are subject to approval by the shareholders of Genus Power and the fulfilment of customary closing conditions to the satisfaction of the GIC affiliates.

The government is implementing the National Smart Metering Project under the Revamped Distribution Sector Scheme. The plan is to install 25 million smart metres by 2025, which will entail an estimated $30 billion investment.

The deal, which will be the largest transaction in the country’s smart metering space, will provide Genus Power with the necessary capital to supplement its manufacturing and execution abilities.

"Genus will scale up the deployment of energy smart metres across India, supporting energy security and transition through grid optimisation and efficiency," the company said.

With technical and commercial losses exceeding 15% for all major Indian utilities, leading to high financial losses, smart metering projects under the RDSS scheme are conceptualised to reduce such losses as well as improve the operational efficiency of distribution companies and their financial sustainability by providing results-linked financial assistance.

Smart metres are also at the core of operationalising the recently announced Time of Day Metering announced by the Government of India.

Appointment of Advanced Metering Infrastructure Service Provider, or AMISP, concessions are awarded by state utilities under RDSS with a concession life of up to 10 years, during which concessionaires receive a monthly service charge for installing and maintaining metres and the associated infrastructure.

"GIC’s investment attests to the strong prospects of the smart metering space, our manufacturing prowess, and our execution track record. We look forward to contributing to India’s sustainability goals by facilitating the efficient use of energy envisioned under the Time of the Day metering recently announced by the Government of India," said Jitendra Kumar Agarwal, joint managing director of Genus Power Infrastructures.

Ang Eng Seng, chief Investment officer of infrastructure at GIC, said that smart metres will play a crucial role in India’s ongoing journey towards improving power sector efficiency. "India remains a key long-term market for GIC, given its strong economic fundamentals and favourable demographics, which are spurring opportunities in many sectors, including infrastructure development."