Genus, GIC affiliate to set up platform to fund smart metering projects

The companies have committed to an initial pipeline with a capital outlay of $2 billion

Genus Power Infrastructures Ltd (Genus Power) on Tuesday announced the signing of definitive agreements with Gem View Investment, an affiliate of GIC, Singapore for setting up a platform for undertaking advanced metering infrastructure service provider concessions.

GIC will hold a 74 per cent stake while Genus will hold a 26 per cent stake in the platform, the company said in a BSE filing.

The two partners have committed to an initial pipeline with a capital outlay of $2 billion. Genus would be the exclusive supplier to the platform for smart meters and associated services, it said.

An affiliate of GIC, Chiswick Investment Pte will invest up to Rs 590 crore by way of a preferential allotment of warrants, which would constitute 15 per cent of the issued and paid-up share capital of Genus on a fully diluted/as converted basis, it added.

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

"This represents the largest transaction in the smart metering space in the country and positions Genus at the forefront of the smart metering revolution underway in the country," Genus said.

"With these transactions, Genus would supplement its manufacturing and execution prowess with access to capital. Genus will scale up the deployment of energy smart meters across India, supporting energy security and transition through grid optimisation and efficiency," it said.

To recall, the government is implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme (RDSS), with a plan to install 250 million meters by 2025 with an estimated investment of $30 billion.

With technical and commercial losses exceeding 15 per cent for all major Indian utilities leading to high financial losses, smart metering projects under the RDSS scheme are conceptualised to reduce such losses, improve operational efficiency of DISCOMs and improve their financial sustainability by providing results linked to financial assistance, the company said.

Speaking on the development, CEO & MD Raj Agarwal said, “Genus has achieved market leadership through its strong focus on R&D and innovation. Our capacity to deliver next-generation Smart meter technology and related Solutions for the evolving needs of the Indian energy sector will be an asset to the platform."