India to Mandate Domestic Chip Design in Smart Meters by Mid-2028

Key Highlights

The Indian Power Sector Conference, held recently, saw Power Secretary Pankaj Agarwal announce plans to implement a nationwide mandate for the use of domestically designed chips in smart meters by mid-2028. This move is part of the government's efforts to mitigate the risk of data breaches in the power sector.

The plan aims to bolster the country's cybersecurity posture and reduce the risk of data breaches.

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The government has already issued the Make in India requirement for the mandating design of domestically fabricated chips in India. With the aim of reducing the overall cost of smart meters by leveraging domestic manufacturing capabilities. The current cost of a smart meter chip ranges between $8 and $10. And the government hopes that domestic design will lead to significant cost savings in the future.

The push for domestic chip design in smart meters is expected to have a significant impact on the overall cost of smart meters. As chip design accounts for a substantial portion of the meter's manufacturing cost. The Ministry of Power has submitted a note on the draft National Electricity Policy (NEP) to the Union Cabinet for inter-ministerial consultation. With the aim of finalizing the policy soon.

In July, the Kudankulam Nuclear Power Plant, one of India's largest nuclear power plants, will undergo a major upgrade to its distribution system, with the aim of improving the efficiency and reliability of the power grid. The Central Electricity Authority has been working closely with the Power Ministry to ensure that the new distribution system is designed with cybersecurity in mind.

The government's efforts to bolster cybersecurity in the power sector are part of a broader strategy to improve the overall efficiency and reliability of the power grid. The Revamped Distribution Sector Scheme, announced in 2005, aims to improve the distribution sector's ability to manage power supply and demand.

The scheme has already led to significant improvements in the efficiency and reliability of power distribution in India.

As the power sector continues to evolve, the use of domestically designed chips in smart meters is expected to play an increasingly important role in enhancing national cybersecurity. With the aim of reducing the risk of data breaches and improving the overall efficiency and reliability of the power grid. The government's plans for domestic chip design in smart meters are likely to have a significant impact on the power sector in the years to come.

Verified Figures and Development

The government plans to allocate 20.33 crore for the development of domestic chip manufacturing capabilities. With the aim of producing 5.73 crore domestically designed chips by 2031. The government has also set a target of producing 7.24 crore domestically designed chips by 2028. With the aim of reducing the country's dependence on imported chips.

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Background Context and Next Steps

The use of domestically designed chips in smart meters is expected to have a significant impact on the overall cost of smart meters. With estimates suggesting that the cost of smart meters could be reduced by up to 52.53 lakh due to the use of domestically designed chips.

Impact on Distribution Transformers

The government has already issued a note on the draft National Electricity Policy (NEP) to the Union Cabinet. With the aim of finalizing the policy soon.