India to mandate use of locally designed chips in smart meters from mid-2028: Power Secy Pankaj Agarwal

According to fresh market updates, The government plans to mandate the use of India-designed chips in smart electricity meters from mid-2028, as it seeks to reduce dependence on imported components and strengthen cybersecurity in the power distribution system, Power Secretary Pankaj Agarwal stated on Thursday.

The mandate for chips that are additionally fabricated in India will follow, Agarwal stated. At present, chips that are used in electricity smart meters are entirely imported.

“Some developers and manufacturers are actively engaged in designing and manufacturing chips for smart meters. Some chips actually are already in the process of being designed, the next stage of which will be testing. As and when they are able to validate the chips, they will go for commercial production,” Agarwal stated.

“We have already issued mandates to include design in India chips and additionally fabricate in India chips from mid-2028 onward,” he further noted.

Moneycontrol noted on September 4 that India’s National Smart Metering Programme was facing cost and execution pressures, with smart meter manufacturers dependent on imported chipsets, relays and certain printed circuit board components. Elevated semiconductor and other imported component costs, along with a weaker indian rupee, were adding to manufacturers’ input costs.

Agarwal stated there was no need for a separate incentive for such chips as procurement under the national smart metering programme would provide developers with an assured market.

The govt’s propel for domestic chips additionally comes amid concerns around cybersecurity in the power sector.

“Cybersecurity is a major offering that needs to be tackled. We not only have to make the applications used in our systems but the core chips too,” Agarwal stated.

“For example, smart meters, they are highly cyber-sensitive devices. It is loaded with data and can be hacked,” he further noted.

The move is part of the govt’s propel to build domestic capabilities across the semiconductor value chain, including chip design and fabrication. Prime Minister Narendra Modi, while inaugurating Semicon India 2025 in New Delhi on September 2, 2025, had stated that the day was not far when the world would say: “Designed in India, Made in India, Trusted by the World.”

India’s National Smart Metering Programme targets the installation of 25 crore smart meters. Under the programme, 20.33 crore smart meters have been sanctioned, of which 5.73 crore had been installed as of June 30, 2026. Overall, 7.24 crore smart meters had been installed across the country under various schemes as of the same date.

That stated, the rollout has faced supply-chain disruptions linked to the West Asia conflict, which have affected the availability and cost of imported components used in smart meters. It has additionally faced delays due to tendering and payment-related issues, consumer data validation, and the time required for testing and approvals. The deadline for completing the programme has consequently been extended to March 2028 from March 2026.