Genus will provide smart meters and related services as an exclusive supplier, to scale up the deployment of smart energy meters across India, supporting energy security and transition through grid optimisation and efficiency
Genus to advance smart metering projects in India. (Credit: Pixelharvester from Pixabay)
India-based smart metering solutions provider Genus Power Infrastructures has teamed with Gem View Investment, an affiliate of Singapore’s sovereign wealth fund GIC, to set up a smart metering platform, dubbed Gem Star Platform, in India.
Gem Star Platform, owned by GIC with a 74% stake and Genus with the remaining 26% stake, will undertake Advanced Metering Infrastructure Service Provider (AMISP) concessions in India.
Genus, as an exclusive supplier, is responsible for providing smart meters and related services.
The partners have committed to an initial pipeline with a capital outlay of around $2bn over a period of three years. GIC affiliate will invest $600m, and Genus about $200m in the platform.
Another affiliate of GIC, Chiswick Investment has agreed to invest INR5.19bn (around $63m) by way of a preferential allotment of warrants, subject to GIC electing to exercise such warrants.
The transactions are subject to approval by the Genus shareholders, and fulfilment of customary closing conditions to the satisfaction of the GIC affiliates.
Genus joint MD Jitendra Kumar Agarwal said: “We are delighted to have a long-term investor like GIC choosing Genus as its exclusive partner in the sector. GIC’s investment attests to the strong prospects of smart metering space, our manufacturing prowess and our execution track record.
“We look forward to contributing to India’s sustainability goals by facilitating efficient use of energy envisioned under the Time of Day metering recently announced by the Government of India.”
Genus CEO and MD Raj Agarwal said: “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.”
According to Genius, all major Indian utilities are facing technical and commercial losses of more than 15%, leading to high financial losses.
The government of India is implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme (RDSS), to install 250 million meters by 2025, with an estimated investment of $30bn.
The smart metering projects under the RDSS scheme are conceptualised to reduce energy losses, improve the operational efficiency of DISCOMs and improve their financial sustainability.
AMISP concessions are awarded by various state utilities under RDSS with a concession life of up to 10 years and concessionaires receive a monthly service charge during this period.
Impact Infracap and Beyond Advisory served as transaction advisors, Talwar Thakore & Associates as legal advisor to Genus, and Resolüt Partners served as legal advisors to GIC.
GIC infrastructure chief investment officer Ang Eng Seng said: “We are pleased to partner with Genus, one of the leading metering businesses in India, to create a new platform that supports the targeted rollout of smart meters in India.
“We believe smart meters will play a crucial role in India’s ongoing journey towards improving power sector efficiency.
“India remains a key long-term market for GIC given its strong economic fundamentals and favourable demographics, which are spurring opportunities in many sectors including infrastructure development.”