Smart meter scam in Karnataka, Rs 7,408 crore looted, a huge burden on the common man

There has been a massive loot in the purchase and installation of Smart Meters in Karnataka. Asianet-Suvarna News has exposed huge irregularities of Rs 7,500 crore in the purchase of smart electricity meters by the Karnataka Congress government. According to the report, Rs 7,408 crore of the common man’s hard-earned money has been swindled by making huge manipulations in the prices of smart meters. The limit is that not only has the subsidy scam been done, but the general public is also being charged extra in the name of smart meters.

Large scale manipulation in smart meter purchase

According to reports, similar rules are applicable for smart meter installation across the country but different rules have been adopted in Karnataka. While in other states the price of a smart meter is Rs 7,740, in Karnataka its price is being charged up to Rs 17,000.

Central government subsidy also in contractors’ pockets

The central government gives a subsidy of Rs 900 per meter for smart meter installation. The state government is transferring this amount directly to the contractor companies and the remaining amount is being recovered from the consumers in installments for 10 years.

Is BESCOM looting the public?

The state government is giving the entire amount to the contractor companies for every smart meter in lump sum. Despite the total cost of the smart meter being Rs 8,510, BESCOM is charging Rs 17,000 from the consumers. That is, Rs 9,260 extra is being charged from the people of Karnataka compared to other states.

An additional burden of Rs 7,408 crore on electricity consumers
The state government is spending Rs 7,408 crore to install 8 lakh smart meters. This amount has been decided on the basis of an additional cost of Rs 9,260 per meter. The government aims to install 9 lakh smart meters every year and the target is to install 39 lakh smart meters in this scheme.

Smart meter prices increased by 400% to 800%

7,000 Crore Tender Scam?

Serious questions are also being raised about the tender process in this scam. It is alleged that the smart meter tender was given to a blacklisted company. Apart from this, there are allegations of forcibly changing meters from old consumers and charging them fees. Alleging irregularities of Rs 7,500 crore in awarding contracts for purchasing smart electricity meters, BJP MLA C.N. Ashwath Narayan on Thursday demanded cancellation of the contract and formation of a committee of the House to probe the alleged irregularities.

Raising the issue during the debate on the state budget in the Assembly, Dr Ashwath Narayan alleged that there were several irregularities in awarding the contract for the purchase of around 39 lakh smart meters. He alleged that instead of procuring directly from the manufacturers, the contract was awarded to a supplier, resulting in increased cost of the smart meters. Besides, he claimed that a blacklisted company was chosen to provide software support for the smart meters.

Questions raised on BESCOM and other ESCOM companies!

Smart meter forcibly imposed on public

Smart meter installation has been made mandatory for new customers, while it is being forcibly imposed on old consumers as well. Whereas, according to the rules, ESCOM itself should bear the smart meter charges of old customers.