Singapore asset management company GIC has set up a smart electricity joint venture with India’s Genus Power.

GIC will hold a 74% stake while Genus will have the other 26% of the platform, which aims to provide advanced metering infrastructure (AMI). The partners have committed to an initial pipeline with a capital outlay of about $2bn. Genus will be the exclusive supplier to the platform for smart meters and associated services.

The transactions are subject to the approval of Genus shareholders and fulfilment of customary closing conditions to the satisfaction of the GIC affiliates.

This represents the largest transaction in the smart metering space in India and positions Genus at the forefront of the smart metering revolution underway in the country. With these transactions, Genus would supplement its manufacturing and execution prowess with access to capital.

Genus plans to scale up the deployment of energy smart meters across India, supporting energy security and transition through grid optimisation and efficiency.

The Indian government is implementing a national smart metering project, with a plan to install 250 million meters by 2025 with an estimated investment of £30bn.

With technical and commercial losses exceeding 15% for all major Indian utilities leading to high financial losses, smart metering projects under the scheme are conceptualised to reduce such losses, improve operational efficiency and improve their financial sustainability by providing results-linked financial assistance.

Smart meters are also at the core of operationalising the recently announced time-of-day metering announced by the government.

AMI concessions are awarded by various state utilities under the scheme with a concession life of up to ten years; concessionaires receive a monthly service charge during this period for installing and maintaining meters and the associated infrastructure.

“We are delighted to have a long-term investor like GIC choosing Genus as its exclusive partner in the sector,” said Jitendra Kumar Agarwal, joint managing director of Genus. “GIC’s investment attests to the strong prospects of smart metering space, our manufacturing prowess and execution track record. We look forward to contribute to India’s sustainability goals by facilitating efficient use of energy envisioned under the time-of-day metering recently announced by the government.”

Raj Agarwal, CEO of Genus, added: “Genus has achieved market leadership through its strong focus on R&D and innovation. Our capacity to deliver next generation smart meter technology for the evolving needs of Indian energy sector will be an asset to the platform.”

And Ang Eng Seng, chief investment officer of infrastructure at GIC, 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 roll out 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.”