Gemstar Infra has secured a major financing commitment of INR 2,600 crore (approximately US$274 million) from a consortium led by the International Finance Corporation (IFC) to accelerate the deployment of smart metering infrastructure across Rajasthan. The funding will support the company’s Special Purpose Vehicles (SPVs) and forms part of a larger IFC-led financing package for projects in the state. The consortium also includes the India Infrastructure Finance Company Ltd (IIFCL).
The investment will be used to deploy and operate around 13.6 million smart meters across 28 districts of Rajasthan under the Government of India’s Revamped Distribution Sector Scheme (RDSS). The scheme is designed to improve the efficiency and financial health of power distribution companies through technology-driven reforms and modernization initiatives.
Smart meters are expected to play a key role in improving billing accuracy, energy accounting, and collection efficiency. They can also help reduce aggregate technical and commercial (AT&C) losses, which remain a significant challenge for power distribution utilities. Increased smart meter penetration is expected to enhance transparency in electricity consumption and support better management of power distribution networks.
Gemstar Infra, a leading Advanced Metering Infrastructure Service Provider (AMISP), views the financing as an important step in expanding its role in India’s power sector transformation. According to NK Panda, Chief Executive Officer of Gemstar India, the funding reflects the confidence of both international and domestic financial institutions in the country’s growing smart metering industry. He noted that the Rajasthan projects will contribute to strengthening power distribution infrastructure while supporting India’s broader goals of energy transition and digitalization under the RDSS program.
IFC also highlighted the importance of smart metering in modernizing India’s electricity sector. Vikram Kumar, Regional Industry Director for Infrastructure and Natural Resources in Asia and the Pacific at IFC, stated that scaling up smart meter installations is a crucial component of the country’s power sector reforms. He added that the investment aligns with the World Bank Group’s strategy of supporting infrastructure modernization, attracting private capital, and creating employment opportunities in installation, operations, and maintenance.
The project is expected to contribute significantly to Rajasthan’s power sector modernization while supporting India’s long-term energy and digital transformation objectives.
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