Those shortlisted are Singapore sovereign wealth fund GIC-backed Gemstar Infra India, Actis, Indian conglomerates JSW Energy and GMR, as well as Mumbai-based clean power company Waaree Energies, the sources said.

Binding bids are due around mid-October, the sources said, adding that the contenders are presently conducting detailed due diligence. One of the sources said that Polaris Smart Metering may be valued at roughly USD 200m.

Apraava Energy, Adani, Eversource Capital, and Greater Pacific Capital were among those that showed initial interest in Polaris, according to earlier reports in domestic media.

In April, Polaris announced that it had secured INR 7.1bn (USD 80m) in financing from British International Investment to support subsidiary Hooghly Smart Metering’s project involving more than 2.2 million smart meters in the state of West Bengal.

Smart meters are a key initiative of the Indian government, aimed at bringing efficiencies in the power sector. The administration introduced the Revamped Distribution Sector Scheme in 2021, mainly to improve operational efficiency and financial viability of distribution utilities.

It sanctioned INR 2.8tn to roll out distribution infrastructure, including smart metering, aiming at reducing aggregate technical and commercial losses to 12%-15% from more than 21% five years ago.

As of last December, the government sanctioned 203 million smart meters, with 47.6 million meters installed so far, according to a statement.

I Squared Capital declined to comment. Actis, GIC, Gemstar Infra India, JSW Energy, GMR, and Waaree Energies did not respond to requests for comment.

[Editor’s note: The article has been updated post-publication to note that Actis declined to comment.]