Rationale

The assigned rating for Garhwal Smart Metering Private Limited (GSMPL) factors in the availability of a long-term contract with Uttarakhand Power Corporation Limited (UPCL) for installing and operating advanced metering infrastructure (AMI). The company is responsible for installing 9,94,379 smart meters along with the associated infrastructure within 27 months of signing the contract i.e., June 20261 . As per the contract, the company will receive fixed monthly service charges for the operational meters through the operating period of 93 months, subject to meeting the stipulated operating parameters, thereby providing long-term revenue visibility. The company would also receive a lumpsum payment, after achieving operational go-live for the smart meters. ICRA notes there has been modest progress in installation of meters with ~18% of the meters installed (1,80,917 meters) as of December 2025. Further, 64,201 smart meters have achieved the go-live status, post the site acceptance tests as of December 2025. The rating also factors in the availability of a fixed EPC and O&M contract with Genus Power Infrastructures Limited (GPIL/ Genus), thereby mitigating the cost variation risk for the project. The company has availed a long-term fund-based term loan facility to fund the capex for the smart meters. ICRA expects the company to maintain adequate debt coverage metrics on the term loan facility. The rating also considers the superior financial flexibility offered by its strong sponsors and the experienced management team. Gem View Investments Pte Ltd (GVIPL), which is a wholly-owned subsidiary of GIC Infra Holdings Pte Ltd (GIH), and Genus Power Infrastructures Limited (GPIL) have set up Gemstar Infra Pte Ltd (GIPL), a platform for implanting smart metering projects across India. GVIPL holds a 74% stake while GPIL holds 26% stake in GIPL. Currently, GSMPL is a subsidiary of Genus Power Solutions Private Limited (GPSPL), which is 100% owned by GPIL. The group is in process of transferring 100% equity ownership of GPSPL to GIPL, post the necessary regulatory approvals. However, as per the joint venture (JV) agreement between GVIPL and GPIL, GIPL is the sponsor for GSMPL and controls all the management rights as also shall be responsible for infusion of equity funds and arranging debt fund requirement of the project. Further, GVIPL controls all the management rights with majority board representation in GIPL. ICRA expects the sponsors to provide the necessary funding support to GSMPL, on need basis. The rating is constrained by project execution risk, given that ~82% of the meters are yet to be installed as of December 2025. Nevertheless, installation activity is anticipated to accelerate in the coming months. As per the contract, there are milestones identified under which liquidated damages (LDs) are applicable and any delays pursuant to those milestones for reasons.