The MDA government led by Chief Minister Conrad Sangma has been caught in a fresh controversy over the pricing of smart meters with allegations that the rates were overcharged much to the suffering of power consumers in the State.
The Hynñiewtrep Youth Council (HYC) has today asked Deputy Chief Minister in-charge Power, Prestone Tynsong to clarify as to how the cost of the project for the installation and supply of 1, 80,000 smart meters was given at a cost of Rs 232 crores when the cost of each smart meter is only Rs 3750 as per his statement on the floor of the Assembly on March 17 this year.
“On March 11, 2021, the then Power Minister James Sangma stated on the floor of the House that the cost of each smart meter is about Rs 3400 and on March 17, 2022, the Deputy Chief Minister in-charge Power, Prestone Tynsong replied in the House that the cost of single phase and three phase smart meters are Rs 3750 and Rs 5120 without GST respectively,” the HYC said.
The HYC also said that on the basis of the replies by Sangma and Tynsong, it had filed RTI queries in the office of the Meghalaya Power Distribution Corporation Limited (MPDCL) on May 30, 2022 in order to get clarity on this issue.
“As per RTI replies it is found that the Board of Directors meeting of MPDCL held on February 12, 2021 approved the price offered by Joint Venture of Satnam Global for Rs 195,34,84,189 (without taxes and provisional sum) and Rs 232,96,39,343 with GST and provisional sum at a derived cost of Rs 9444 per smart meter with services,” the HYC said.
It also said that the LOA was issued to Satnam Global on February 16, 2021 as per contract price.
As per the LOA, the ex-works price components amount to Rs 171,48,42,495 which come to about Rs 9526 per smart meter. Further, the GST component is Rs 30,86,71,649 which comes to about Rs 1715 per smart meter. The installation price component is Rs 25,94,28,135 which comes to about Rs 1441 per smart meter. The GST component on installation is Rs 4,66,97,065 which is about Rs 259 per smart meter.
“The total contract is Rs 232,96,39,344 and if you make a simple calculation, the total cost incurred for the supply and installation of one smart meter is Rs 12,941, whereas the cost of installation, testing and commissioning of each smart meter is Rs 12,941- Rs 3750 = Rs 9191 which is almost two times the procurement cost,” the HYC said.
The HYC also said that from the figures arrived at it is unclear as to how Sangma and Tynsong provided different replies in the Assembly regarding the rate for supply and installation of each smart meter.
“In order to clear the doubts in the mind of the public and the citizens of the State we demand that the Deputy Chief Minister in-charge Power clarify as to how the cost of the project for the installation and supply of 1,80,000 smart meters is shown as Rs 232 crore when the cost of each meter is only Rs 3750 as per his statement on the floor of the House. We would also like to demand that justification be given as to how the installation, testing and other services of each smart meter is given at Rs 9191 when the cost of each meter is only Rs 3750,” the HYC said.
HYC also stated that as per replies given in the RTI, the cost of maintenance and SIM card of the smart meter will have to be borne by a consumer at the end of a period of two years. “This in our view will create great difficulties to the consumers, particularly the rural consumers,” it said.
It also said that as per RTI replies, East Garo Hills and West Garo Hills distribution circles are two circles where Aggregate Technical and Commercial (AT&C) loss is very high at 75.34 per cent and 60.72 per cent respectively.
“So we reiterate our demand as stated in our earlier communication to the State government that smart meters should be implemented in the two distribution circles as a pilot project. And if the result is satisfactory, then it may be extended to other distribution circles where AT&C loss is comparatively high. We also demand that the MPDCL should carry out awareness programmes on the pros and cons and the future liabilities of the consumers in those villages where smart meters will be installed,” the HYC said.
