In Madhya Pradesh, there are three state-owned distribution companies (discoms), in Jabalpur (East Discom), in Indore (West Discom) and Bhopal (Central Discom). Discoms in Madhya Pradesh are currently serving around 11.7 million consumers. The AT&C losses at Madhya Pradesh discoms boundary have reduced from 36.45% in FY 11 to 23.07% in FY 15. For further period from till FY 19 the state has targeted to achieve the AT&C loss of 17%. Following meetings with AFD New Delhi officials, the conclusion was a need for reduction of AT&C in distribution sector and deployment of smart grids to ensure better accountability in power distribution sector of Madhya Pradesh. In this context, AFD wants to perform a detailed study on the needs for reinforcement, modernization and automation of the distribution grid in Madhya Pradesh. The study shall: - Include a description of the structure of the grid and list existing needs in terms of automation and modernization (gap analysis); - Investigate how and to what extent smart grid solutions could help reduce AT&C losses and improve quality of supply, security and profitability of the discoms; - Draw a roadmap to a “smarter grid” in Madhya Pradesh, with recommendations in terms of investments and opportunities for short- and medium-term financial support from AFD to the state of Madhya Pradesh.