New Delhi, March 30 -- Power distribution companies (discoms) could generate an additional revenue potential of around Rs 4.0 lakh crore over the next seven years by installing smart meters across India, Care Edge Ratings said in a report this week.

Should billing and collection efficiencies improve substantially, the financial gains could exceed initial projections, further bolstering the financial health of the power sector, the rating agency asserted.

India's power distribution sector is undergoing a critical transformation with the push towards smart grids. The implementation of advanced metering infrastructure (AMI) has shown positive results by far.

The installation of smart meters has been progressing, with around 2.0 crore mete...