Not buying from China, will supply J&K Smart meters by Dec: Techno Electric

Contract has been signed with Indian unit of Dongfang, allegations are unfounded, says Kolkata-based electric equipment manufacturer

Techno Electric & Engineering Company, a Kolkata-based electric equipment manufacturer, which won the tender for installing a total of 200,000 smart meters in Jammu and Srinagar, said it stands by the project despite “unreasonable allegations” and will complete it by the year-end.

 P P Gupta, managing director of Techno Electric, said the sub-contract for supply of remote communication technology was signed with the Indian unit of Chinese equipment major Dongfang Electronics. And, Techno is “not importing any Chinese equipment” for the project.

This paper recently reported that the Jammu power department had asked for an inquiry and scrutiny of the tender by RECPDCL — the tendering authority for the smart meter project. The letter, dated July 9, is in response to several complaints made by L&T and CyanConnode, which said Techno hired a Chinese company as its sub-contractor which hurts ‘national security’.

Responding to the statements made by L&T and CyanConnode, Gupta said, “After seven months of award of contract, now that there are border tensions, the companies are writing against the project.”

The project, costing Rs 125 crore, was awarded by RECPDCL, an arm of Rural Electrification Corporation under the ministry of power, in 2019. It entails setting up 100,000 smart meters each in Jammu and Srinagar, along with allied communication and back-end infrastructure.

Divided into three parts – the main engineering, procurement and construction contractor is Techno Electric and sub-contract of meter supply is Allied Engineering Works. Radio frequency (RF) communication will be done by Dongfang Electronics. RF is a remote communication system for power equipment such as smart meters.

However, according to documents accessed by Business Standard, the winning bid by Techno Electric was with L&T as meter supplier and a Gurgaon-based UK firm CyanConnode as RF communication supplier. Both have alleged ‘breach of contract’ and that Dongfang and AEW lack “technical qualifications”.

Gupta said there was no exclusivity between his firm and the two sub-contractors – L&T and CyanConnode – for executing this project. He also said L&T was not on the same table with them over pricing.

RECPDCL has denied any communication from Jammu power department regarding this project and also said additional sub-contractors were allowed under the tender guidelines. “Allied is one of the largest manufacturers in Delhi and has, in the past, supplied to EESL,  a government-owned firm, as well. These meters have been tested by the Electrical Research and Development Association based in Baroda and are BIS certified. So, the statements regarding their qualifications are unfounded ,” said Gupta.

He said the smart meter market has started opening up only in recent years and was still under the monopoly of certain players such as L&T and Genus. “They want to keep their hold on the market but the sector needs more vendors who can meet the current demand,” Gupta said.

Techno quoted Rs 255 crore for 200,000 smart meters in the reverse bidding. However, due to budget restrictions, RECPDCL awarded Techno only 115,000 tenders for Rs 125 crore. It comes with the undertaking that on the same terms, the second phase of the project would be executed, Gupta said.

He said, earlier, tenders were restricted to only meter manufacturers but the government is opening up to more players by expanding the qualifications for EPC companies and system integrators. “The government wants more players in the market,” said Gupta, adding the Jammu government is supporting the project and any inquiry is just for “due diligence under protocol.”