GHMC to junk govt firm, hand over street lights to pvt cos

Hyderabad: Despite a contract in force with Energy Efficiency Services Limited (EESL) till April 2025, GHMC is set to install new street lights in the city following inadequate upkeep of crucial lighting infrastructure.
The civic body recently floated tenders for procuring and supplying 15,000 street lights of different wattage, which was estimated to cost around 3 crore.The move to install new street lights was a consequence of EESL's reported inability to comply with terms and conditions in the contract.
GHMC had signed an agreement with EESL, a company promoted by the Union ministry of power, on May 29, 2017, to replace all conventional street lights with LEDs at a cost of 271 crore, besides providing free operation and maintenance support for the contract period of seven years. As per the contract, EESL was to offer free replacement of defective lights. The agency should also maintain a glowing rate of street lights at a minimum of 98%.
At present, over five lakh LED street lights have been installed in the city. However, for a long time, there were several complaints regarding the subpar performance and malfunctioning of these lights. Furthermore, as per the agreement, EESL was to maintain a buffer stock of 26,000 lights. Despite this requirement, the agency kept a stock of lesser than 5,000 lights, falling short of the required quantity.
"We have to pay EESL 7 crore per month for the street lights. However, due to EESL's unsatisfactory performance, we withheld payment of the dues for the last six months. In this regard, we decided to allocate the maintenance and operation of street lights to six separate agencies, each responsible for a specific zone from 2025 to improve efficiency and accountability, as opposed to the current system where a single entity, such as EESL, handles the entire city's street lighting," a senior official in the electrical wing, GHMC, said.
When contacted, EESL officials refused to comment on the development.
Meanwhile, EESL has invited bids for dismantling, installation and commissioning of 40,194 LED street lights and repair and maintenance of 1,33,133 lights for a period of three years and ten months or until the project completion of respective ULBs and other related works in Telangana. The responsible agency has to refurbish, repair, and maintain Central Control and Monitoring System (CCMS) along with a comprehensive onsite warranty, including supply of spare parts.