GHMC’s debt casts bleak future for LED streetlights in Hyderabad

The GHMC's failure to clear dues, now accumulated to a staggering Rs.144.48 crore, has left the Energy Efficiency Services Limited (EESL), a joint venture under Ministry of Power, in a precarious financial situation.

Hyderabad: The LED streetlights that have brightened the city in last few years appear to be heading for a bleak future.

The Greater Hyderabad Municipal Corporation’s failure to clear dues, now accumulated to a staggering Rs.144.48 crore, has left the Energy Efficiency Services Limited (EESL), a joint venture under Ministry of Power, in a precarious financial situation. In the last six months itself, the EESL has also not been paid the regular annuity amounting to Rs. 57.10 crore.

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Despite this, the EESL in a statement said it is committed to fulfill its commitment to the people of Hyderabad, ensuring that 5.48 lakh LED streetlights are maintained and operational across the city.

Although EESL’s contract is valid until April 2025, the GHMC has issued a tender for the procurement and supply of 15,000 new streetlights at a cost of Rs 3 crore to meet its obligations, without settling dues. This new tender and delay in payments are not due to performance issues, as EESL has consistently maintained the city’s streetlights and addressed complaints, but rather GHMC’s failure to reconcile and clear pending payments, the EESL maintained.

The EESL has been providing its services under the Energy Service Company (ESCO) model, where it took on the entire upfront investment, expecting monthly repayments from GHMC to cover both capital and operational expenditures.

Even with significant payment delays, the company has maintained public safety by addressing 98.9 per cent of the 2,18,422 complaints received in the past eight months, and replaced 44,753 faulty streetlights. Each day, between 600 and 700 defective LED streetlights are addressed and added to the maintenance inventory. It has also installed 3,600 new streetlights in the past two months to meet the city’s growing needs.

The statement said EESL has installed over 1.723 million streetlights across 140 municipal bodies in Telangana, including GHMC, saving the state an estimated 193 MW of peak power annually and reducing carbon emissions by 0.81 million tons of CO2.

However, Telangana owes EESL Rs 314 crore across various projects, with payments delayed by 19 to 24 months. EESL’s streetlight contract, covering 74 municipal bodies, will expire in April 2025 and it has shown scope for an extension. However, it will depend on timely payments and improved financial arrangements with the state government.

“Despite the significant financial challenges posed by GHMC’s delayed payments, EESL remains steadfast in its commitment to the people of Hyderabad. However, the long-term sustainability of this project requires GHMC to honor its contractual obligations. We urge GHMC to release the pending dues promptly, as this will enable us to further enhance the city’s lighting infrastructure and meet the growing demands,” said Ramesh T, State Head, EESL.