IFC-Led Consortium Invests INR 2,600 Crore to Drive Smart Meter Deployment Across Rajasthan

To accelerate the rollout of smart metering infrastructure in Rajasthan and support the modernisation of the state’s power distribution system, a consortium led by the International Finance Corporation (IFC), acting as Mandated Lead Arranger, has committed an investment of INR 2,600 crore (USD 274 million) in the Special Purpose Vehicles (SPVs) of Gemstar Infra (Gemstar), an Advanced Metering Infrastructure Service Provider (AMISP). This commitment forms part of a broader IFC-led financing package for Rajasthan SPVs. The consortium also includes India Infrastructure Finance Company (IIFCL).

The partnership will support the deployment and operation of 13.6 million smart meters across 28 districts of Rajasthan under the Government of India’s Revamped Distribution Sector Scheme (RDSS). The scheme aims to improve the operational and financial performance of power distribution utilities through technology-enabled reforms.

The investment will enable increased smart meter penetration, with energy savings driven by improved billing accuracy, energy accounting, collection efficiency and reduced aggregate technical and commercial losses.

NK Panda, Chief Executive Officer, Gemstar India, said, “This financing represents a significant milestone for Gemstar and reflects the confidence that leading international and domestic financial institutions have in India’s smart metering sector. The Rajasthan projects will contribute meaningfully to strengthening power distribution infrastructure while supporting the country’s broader energy transition and digitalisation objectives under the RDSS.”

Vikram Kumar, Regional Industry Director, Infrastructure and Natural Resources in Asia and the Pacific, IFC, said, “Scaling up smart meters is an essential component of India’s power sector transformation. This investment, in line with the World Bank Group’s country strategy, supports infrastructure modernisation, mobilisation of private capital and creation of jobs in installation, operations and maintenance. We are proud to partner with Gemstar to support a technology-driven model that can strengthen the financial and operational performance of India’s power distribution sector.”