Custody transfer in measurement of flow is referred as fiscal metering where the change of ownership involves. Metering errors in custody transfer calls for a rapid improvement in flow measurement technology. However, standard ideal and field real conditions vary due to the constraints such as non-availability of straight length at upstream and downstream piping, disturbances of flow elements of valves, bends etc will lead to variation in accuracy of flow meters do not permit to fulfill this requirement. Flow metering technique such as acoustic method is recommended as complement flow measuring technique for hydro turbines. The motivation of the study is drawn from a typical penstock of hydro plants where the straight lengths on penstocks are generally not available and the flow through the conductor system is regulated by valves. The flow distortion effect of flow elements causes the extent of errors during the flow metering. The numerical and experimental investigations are presented in this paper is to highlight the installation effects and simulate the variation in accuracy for flow rate measurement using clamp on type flow meter by inverse method at the main inlet valve of a hydro turbine. A commercial CFD Fluent solver is used to validate the velocity distortion of the installation on the closed conduit. The CFD analysis is useful for faster analysis on the installation effects where the limitation of time constraints. A reference can be drawn from the results where standard straight lengths are not met. These findings are also useful in selecting a suitable location for the installation of ultrasonic flow meters and helps in identifying the proper location for the installation flow disturbances like bends, valves and spool elements. The findings are useful in eliminating the uncertainty for the performance evaluation of hydro turbines where the flow is one of a vital parameter in improvement of system.