Smart grid concept promises a reliable and efficient supply of electricity. It recognizes the growing importance of Information and Communication Technologies (ICTs). By incorporating ICT in the existing electrical network, it will transform into the smart or intelligent grid. A vivid study of components of the smart grid i.e. smart meter, TOD meter, ICT, Advanced Metering Infrastructure (AMI) is illustrated which is based on the visits at different places like Lavasa, Kalkhairewadi and Bhigwan in Pune district in Maharashtra state of India. Application of smart meters for fault location is focused in this paper. The efforts have been taken to highlight the issues in the traditional fault locating techniques for Transmission and Distribution network.