Main features and Guidance notes of SBD for appointment of Advanced Metering

Infrastructure (AMI) Service Provider for Smart System Metering in India

1. This Model Standard Bidding Document (SBD) has been prepared for the selection and
appointment of Advanced Metering Infrastructure (“AMI”) Service Provider (“AMISP”) for
Smart System Metering in India on Design Build Finance Own Operate Transfer (DBFOOT) basis
by the DISCOMs

2. The provisions in angle brackets (< >) are for guidance and should be omitted from the RFP
before it is issued to prospective Bidders

3. All Project-specific provisions in the model RFP have been enclosed in square parenthesis ([])
and may be modified, as necessary, before issuing the RFP to prospective Bidders. The square
parenthesis should be removed after carrying out the required modification. DISCOM is advised
to carefully read the SBD and insert DISCOM specific and RFP specific details in the blank
and/or highlighted portions

4. Incorporation of a Special Purpose Vehicle (SPV) by the Selected Bidder for project
implementation would be mandatory, in both cases, where the Bidder is either a Sole bidder or a
Bidding Consortium.

5. However, if a Central Public Sector Enterprise (CPSE) / Public Sector Undertaking (PSU) or
Subsidiary/ Joint Venture of a CPSE/ PSU is either the sole Bidder or a member of a Bidding
Consortium, then creation of an SPV is not mandatory. In such an event, few changes as
mentioned in the guidance note section of the RfP shall be adhered to.

6. The Model RFP includes the following sections:

Section Description
1. Request for Proposal This Section includes the Notice for Request for Proposals
(RFP) Notice
2. Eligibility and This Section contains information regarding specific eligibility and
Qualification Requirement qualification requirements applicable for prospective bidders to be
considered for further evaluation of their proposals
3. Instruction to Bidders and “Bid Data Sheet” contains information specific to selection and
Bid Data Sheet corresponds to the clauses in “Instructions to Bidders” that call for
selection-specific information. “Instructions to Bidders” provides
information to help prospective bidders prepare their proposals
4. Bidding Forms- Technical This Section includes the forms for Technical Proposal that are to be
Proposal completed by the prospective bidders
5. Bidding Forms- Financial This Section includes the financial forms that are to be completed by
Proposal the prospective bidders, including the bidders’ costing and pricing
6. Project Requirements This Section describes the background information of the Project,
Scope of Work, System Requirement, Specifications, Quality
Requirements, Service Level Agreement (SLA), Standards,

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 Activities and Tasks, Plans, Deliverables, Documentation and other
requirements/ details related to and/or connected with the Project
7. Contract Form and This Section includes standard contract form. It includes General
Condition of Contract Conditions of Contract (“GCC”) and Special Conditions of Contract
(“SCC”). The SCC include clauses specific to this contract to
supplement the General Conditions.
8. Contract Related Forms This Section includes the form used to notify Award of the Contract
to the successful bidder and the form for Performance Security to be
furnished by the bidder

7. The scope of services of the AMISP is to implement end-to-end smart system metering in the
selected AMI Project area, operating the AMI System for ‘Total Meter-months’ and thereafter
transfer the ownership of the entire AMI system along with its valid licenses, and any data
collected during the Project to the DISCOM at the end of the Contract Period. The functions of
AMISP shall include the following:
i. Supply, installation, integration, testing and commissioning of Smart system metering,
Communication Infrastructure, Head End System (HES), Meter Data Management system
(MDM), Mobile Application, Network Operation cum Monitoring Centre (NOMC), auxiliary
LT components, along with necessary hardware and software
ii. AMI System integration to ensure timely data exchange of consumer and system meter
information between the Utility solutions and the AMI system for carrying out energy
accounting and generation of the various reports, as required.
iii. Consumer indexing with DTs and feeder to DT indexing on de-novo basis
iv. Generation of automated energy audit reports
v. Operation, maintenance, and support services after the successful completion of the
Operational Go-Live of the system
vi. Training of DISCOM personnel
vii. Other activities to be carried out to ensure successful installation and commissioning

8. Exclusions from AMISP’s Scope of Work:

i. Implementation of Consumer portal and mobile application
ii. Construction of building for NOMC;
iii. Lighting system for NOMC;
iv. Interior and Integrated Building Management System (IBMS) of building for NOMC;
v. Air conditioning and ventilation for NOMC;
vi. Firefighting system for NOMC;
vii. A.C. input power and back-up supply for NOMC;
viii. Any modifications required in the existing system of the DISCOM (Billing, Website, etc.).

9. Project Structure:
i. The bidding shall be conducted under Single Stage Two-Envelope Bidding process
ii. The Financial Bid shall include only the cost of different meter types and the person-day rate
for executing new requirement for software components. While providing the financial
quote, the Bidder must consider the lump-sum payment to AMISP. The Bidder shall

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 accordingly quote the AMISP Service Charge for Contract Period. The AMISP Service
Charge shall be inclusive of all costs related to installation, operation and maintenance of
the AMI Project
iii. Technically qualified Bidder with the lowest Financial Bid shall be considered as the
Successful Bidder and shall be considered for award of the AMISP Contract
iv. The ownership of the meters shall remain with the AMISP during the contract period as
mentioned in Clause 4 of the amendments notified in CEA (Installation and Operation of
meters) Regulations, 2022 dated 28th Feb 2022.
v. Payments to the AMISP shall be made monthly on the basis of the total number of meters in
operation and maintenance phase at the end of each month Post-Operational Go-Live. The
payment shall also include any lumpsum payment for new meters which are installed and
integrated, lumpsum payment towards installation and commissioning of auxiliary
components, payment towards change request/new requirement completed and agreed cost
for replacement of meters due to vandalism, theft, force majeure, etc. (as applicable)
vi. To facilitate the AMISP in implementation of the project, Utility, at its discretion, may
provide to the successful bidder an interest-bearing advance payment against an advance
payment security furnished by the successful bidder in the form of a bank guarantee for [15]
% of the Contract Price. The advance payment shall be [70] % of the advance payment
security furnished.
vii. As per the Revamped Distribution Sector Scheme, the DISCOM shall receive Government
Budgetary Support from Central Government of 15%/ 22.5% of the approved cost of the
metering works including the operational cost. Accordingly, the DISCOM shall provide a
minimum lumpsum amount of INR 3450/ 5175 per DT meter in the RFP (Form 1 of Section
5) calculated assuming smart metering cost of Rs. 23,000 per DT meter over the project life.
Similarly, the DISCOM shall provide a minimum lumpsum amount of INR 6300/ 9450 per
Feeder meter in the RFP (Form 1 of Section 5) calculated assuming smart metering cost of
Rs. 42,000 per Feeder meter over the project life. In case the price discovered in the Bid is
less than or greater than Rs. 23000 per DT meter or Rs. 42000 per Feeder meter over the
project life, the DISCOM shall be eligible for GBS of 15/22.5% of the discovered cost.
viii. For the purpose of evaluating the bidder’s qualification requirements, the utility shall
estimate the project value based on per unit estimates considered/ sanctioned under RDSS
scheme. However, in case of any difference from the same, the utility shall determine the
estimated project cost and take necessary approvals from their respective competent
authority before publishing of the tender.
ix. Accounting process of AMISP payment:
a. Transaction Nature: Payment to the AMISP by the DISCOM shall be considered as an
Operational Expenditure on DISCOM’s account
b. Regulatory Treatment: DISCOM to consider AMISP payments as operation expenditure
while filing ARR and tariff review petition to the state ERC
c. GST Implications: As this is an OPEX project, GST shall be paid by the AMISP. The ITC
will be recovered throughout the contract period
x. Quantity variation to the limit of - 20% and up to +30% shall be permissible through Change
Order under the Contract without any change in the unit prices

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 xi. The overall contract period shall be earlier of (a) 10 (ten) years from the date of execution of
the Contract or (b) As soon as the “Meter-Months” exceeds “Total Meter-months”
xii. DISCOM shall establish a Direct Debit Facility for the entire online consumer payments to
ensure recovery of the amount due to be paid to the AMISP. The Direct Debit Facility would
include a bucket filling approach whereby all consumer recharges and bill payments from the
11th (eleventh) working day of every month up to 10th (tenth) working day of the immediately
succeeding month will be routed directly to the AMISP till such time the payment due to the
AMISP is recovered in its entirety
xiii. Establishing the Direct Debit facility shall act as a condition precedent to award of the contract
by the utility to the selected bidder. In case of failure of Utility to establish direct debit facility,
then contract signing shall be put on hold and the utility would have to propose an alternate
payment security mechanism and would need to approach the Nodal Agency (REC) for
necessary approval and further course of action.
xiv. DISCOMs with direct charge on their entire revenue account need to obtain No Objection
Certificate (NOC) from their lenders prior to creation of Direct Debit Facility. In case NOC is
not available and Direct Debit facility cannot be established, DISCOM shall approach the Nodal
Agency, i.e., REC prior to issuance of smart system metering tenders for facilitating suitable
alternate payment security mechanism such as Letter of Credit, Escrow, etc. on case-to-case
basis
xv. SBD stipulates a project manager and 3 key experts in the areas of System Integration, Cyber
Security and Communication Protocol. However, the number of key experts and field
engineers/supervisors for deployment have to be decided by the AMISP as per requirement
including for execution of new requirements related to software components
xvi. Utility Shall ensure process inter-lock as follows:
i. Any new consumer added to the Utility database shall be routed through the AMI
system to ensure accurate tagging/ indexing of consumers.
ii. Any modifications/ new additions in the network assets of the Utility, e.g., O&M
works that lead to new asset addition (DT/ Feeders etc.), segregation of existing
assets (Feeder segregation, creating of dedicated feeders etc.) shall be routed
through the AMI system and the Utility shall ensure that the said asset is reflected
in the AMI system/ any Utility software.

10. DISCOM to provide information on electrical locations (which will be ring fenced with boundary
meters) for end-to-end smart metering within the selected AMI Project Area along with relevant
network and consumer details. DISCOM to enter brief details on the Project Area with details
added as an annexure to the SBD as required. DISCOM to ensure that area selected for end-to-
end metering is ring-fenced with boundary meters. This would include a pictorial representation
of the Project boundary w.r.t DISCOM’s and AMISP’s roles and responsibilities for physical
installation of Smart Meters.
11. For supply, installation, and commissioning of LT Auxiliary components like DT cable, meter
distribution box etc., DISCOM shall assess their requirements and define the various enabling
accessories required for successful installation and functioning of the Smart System Meter.
Components provided in Section B of the Annexure of the Financial proposal are illustrative and
DISCOM shall modify the list of items based on their requirements.

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 a. Payment against these LT Auxiliary components shall be paid to the AMISP on a
lumpsum (capex) basis, as per terms and conditions of the AMISP contract.
b. The cost of above auxiliary components shall not be included in the per meter per month
cost discovered as part of the bidding process. Cost for these components shall be quoted
separately under Section B of the Annexure of the Financial proposal.
c. Rates per unit quoted by the bidder shall not exceed the SoR rates as approved by the
Utility.
d. Funding for LT Auxiliary components shall be made from Distribution Infrastructure
works component sanctioned for the Discom under RDSS. In case these LT auxiliary
components are not sanctioned under RDSS, the same may be funded from Discom’s
own funds.

12. Inclusion of Feeder metering as part of the scope of the AMISP shall be optional and at the
discretion of the DISCOM.

13. Except for the number of Smart Meters, no other provision in the SBD for AMISP shall be
modified by the DISCOM without prior approval from the Nodal Agency. The quantity of smart
meters to be installed should be based upon As-Is consumer database as well as projected load
growth in the selected AMI Project Area during the Contract Period. Accordingly, the DISCOM
should provide the appropriate quantity of smart meters to be installed for the AMI project

14. The AMISP shall provide meter LTCTs for LTCT meters as per the specifications provided by
the DISCOM.

15. Only BIS certified smart meters shall be installed in the Project Area. However, in case DISCOM
require additional meter specifications over and above the BIS standards, DISCOM shall provide
the same as annexure to the SBD. This Annexure needs to be approved by the nodal agency on
case-to-case basis prior to issuance of tender.

16. Test and inspections shall be under the complete purview of the AMISP and its sub-contractors. It
shall be ensured that there are no conflicts in roles played between AMISP personnel carrying out
tests / inspections, and those assigned responsibilities of quality assurance (QA) and quality control
(QC). However, if the DISCOM so desires, it may choose to witness the tests at its own cost as per
its convenience. DISCOM shall only certify the Operational Go-Live of the AMI system.

17. The Bidder shall provide an indicative list of equipment necessary to meet the technical
specifications, functional & performance requirements as per SBD at the time of submission of
Bid. Post award of Contract, the Selected Bidder/ AMISP shall submit a detailed Bill of Quantities
(BoQ) for materials and services to be provided under the Contract as a part of the Project
Implementation Plan and shall keep this BoQ updated along with its Exit Management Plan.

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18. The Project Implementation Schedule provided in the SBD has been prepared considering
installation of 1-2 Lakh Smart system meters. DISCOM may appropriately change the timeline
of the project in case of larger/ smaller deployments.

19. The guidance notes and SBD for AMISP are to be followed. However, in case of any contradiction.
the provisions in the operational guidelines for the Revamped Distribution Sector Scheme issued
vide letter 31.03.2022 shall prevail along with any further amendments therein.

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