Punjab State Power Corporation Limited (PSPCL) has cancelled the tenders floated to install smart electricity meters in the state. The power utility has also cancelled the Letter of Award (LoA) issued to central public sector undertaking (PSU) Telecommunications Consultants India Limited (TCIL) and forfeited its bank guarantee of Rs 9.86 crore.On July 28, the full-time Directors of the PSPCL decided to cancel the award of tender for one of the five zones. Earlier this month, the state government decided to cancel the tender for all zones.While the state government has highlighted several anomalies in the award of contract to the PSU, the TCIL has lodged a strong protest against the cancelling of the tender.Confirming the development, PSPCL Chairman-cum-Managing Director Dr Basant Garg said five tenders had been dropped after several discrepancies were found in the award of the contract.“Other than poor performance of the PSU, there was a discrepancy in the rates quoted by the company. All five tenders have been dropped,” he said, adding that the company had violated the terms of the LoA and a fresh tender would be floated.The PSPCL had invited tenders for the installation of smart meters across the state under the Union Ministry of Power’s Revamped Distribution Sector Scheme.The TCIL was allotted the tender for Rs 328.83 crore on January 30. The PSU subsequently deposited a performance bank guarantee of Rs 9.86 crore on February 13.Under the award, the TCIL was to install around 26 lakh smart meters in the first phase. Of these, 4.52 lakh smart meters were to be installed in the central zone earmarked by the state powercom.While bidding for the tender, the TCIL had identified Adya Smart Metering as its subcontractor; however, after the LoA was issued, the company changed its subcontractor without seeking prior approval from the PSPCL, thus violating the conditions of the tender, officials said.However, the TCIL has rejected the allegations. In a communication to the PSPCL, the PSU claimed that the power utility had delayed the signing of the main agreement for nearly seven months and had not issued them any formal notice before cancelling the award. The company has sought unconditional release of its bank guarantee and warned that failing this, they would be compelled to initiate legal proceedings.The PSU claimed that its officials approached top officers of the Punjab Government between June and July for the signing of the main agreement, but in vain.