Shares of GMR Power and Urban Infra Ltd. hit the 20 percent upper circuit on Friday after the company received an order to implement a smart metering project in the Purvanchal area of Uttar Pradesh.

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The stock touched the upper circuit of Rs 24.14 on along with heavy trading volumes. Today's trading volumes are 4,833 percent higher than its 20-day average

In a stock exchange notification late on Thursday, GMR power said that its step down subsidiary GMR Smart Electricity Distribution Pvt. Ltd (GSEDPL) has received a Letter of Intent (‘LOI’) from Purvanchal Vidyut Vitran Nigam Ltd and Dakshinanchal Vidyut Vitran Nigam Ltd to implement smart metering project in Varanasi, Azamgarh zone, and Prayagraj, Mirzapur zone, and Dakshinanchal (Agra and Aligarh zone) area of Uttar Pradesh.

As per the terms of the order, GSEDPL needs to install, integrate and maintain 75.69 lakh smart meters in the given area. The project will be completed in 10 years.

The project will be executed under the Revamped Distribution Sector Scheme (RDSS) and is expected to reduce the AT&C (aggregate technical and commercial) losses in the designated area and improve operational and collection efficiency of UP distribution companies.

The LOI has been issued in conclusion to the e-tender floated by UP discoms for different areas of Uttar Pradesh. GSEDPL had participated in the e-tender and emerged as a winner.

GMR Power and Urban Infra is a subsidiary of GMR Enterprises Private Ltd and it holds expertise in the sectors of energy, urban infrastructure and transportation.

Smart meters as a sector has been in focus over the last two weeks, with stocks like Genus Power, HPL Electric and Tata Power receiving orders to the tune of Rs 5,000 crore. You can read more on this here.

Shares of GMR Power are off the upper circuit, but remain 12.1 percent higher at Rs 22.60.