EESL has also not been paid the regular annuity of last 6 months amounting to Rs 57.10 crore
EESL has installed 1.72 million streetlights across 140 municipal bodies in Telangana, saving 193 MW of power and cutting 0.81 million tons of CO2 emissions annually.
Hyderabad, October 13, 2024: Greater Hyderabad Municipal Corporation (GHMC) is still behind on payments, leaving Energy Efficiency Services Limited (EESL), a joint venture under the Ministry of Power, in a dangerous financial scenario with an astounding Rs 144.48 crore unpaid. In spite of this, EESL has persisted in keeping its promise to the citizens of Hyderabad by making sure that 5.48 lakh LED lamps are kept up and functional throughout the city.
GHMC has put out a tender for the purchase and supply of 15,000 new streetlights at a cost of Rs 3 crore in order to fulfill its obligations, even though EESL’s contract is only valid until April 2025. EESL has not yet received payment for its outstanding balance. Due to GHMC’s inability to reconcile and settle outstanding payments, this new tender and payment delay are not the result of performance difficulties, as EESL has continuously maintained the city’s streetlights and resolved complaints.
Under the Energy Service Company (ESCO) model, which EESL adopted, it assumed full upfront costs and has been receiving monthly payments from GHMC to cover both capital and operating expenses. The company has diligently upheld public safety by resolving 98.9% of the 2,18,422 complaints it has received in the last eight months, despite notable payment delays. Between 600 and 700 malfunctioning LED streetlights are fixed every day and added to the maintenance inventory by EESL, which has successfully replaced 44,753 malfunctioning streetlights. In order to fulfill the expanding needs of the city, it has also erected 3,600 new lighting in the last two months.
From September 2018 to December 2023, 10,655 LED streetlights were damaged in GHMC areas due to factors like lightning strikes, high voltage, unauthorised handling, and accidents—issues that fall outside of EESL’s contractual obligations, which only cover manufacturing defects. These damages were verified through joint inspections by both GHMC and EESL, but the matter remains unresolved.
Not to forget, 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 19-24 months. EESL’s streetlight contract, covering 74 municipal bodies, will expire in April 2025. EESL 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 Shri Ramesh T, State Head, EESL.
The financial strain caused by GHMC’s delays has impacted the viability of the project, as well as EESL’s ability to sustain operations. Payments related to streetlight maintenance, energy savings, and penalties have been consistently withheld, putting immense pressure on company’s financial resources.
About Energy Efficiency Services Limited (EESL)
A joint venture of NTPC Limited, Power Finance Corporation, Rural Electrification Corporation and POWERGRID, Energy Efficiency Services Limited (EESL) was set up under the Ministry of Power, Government of India (GoI) to facilitate implementation of energy efficiency projects. EESL is a Super Energy Service Company (ESCO) that seeks to unlock energy efficiency market in India, estimated at Rs 74,000 crore that can potentially result in energy savings of up to 20 percent of current consumption, by way of innovative business and implementation models. It also acts as the resource centre for capacity building of State DISCOMs, ERCs, SDAs, upcoming ESCOs, financial institutions, etc.
