GHMC’s Default on Payments Amounts to Rs 144.48 Crore
The Energy Efficiency Services Limited (EESL), a joint venture under the Ministry of Power, is facing a severe financial crisis due to the Greater Hyderabad Municipal Corporation (GHMC)’s default on payments amounting to Rs 144.48 crore.
EESL Urges GHMC to Fulfill Contractual Obligations
Despite the financial challenges caused by the GHMC’s delayed payments, EESL remains committed to serving Hyderabad. However, the company has urged the GHMC to fulfill its contractual obligations to ensure the long-term sustainability of the project.
Withheld Payments Hamper EESL’s Financial Stability
The withheld payments, including those for streetlight maintenance, energy savings, and penalties, have hampered EESL’s financial stability and threatened the project’s viability. The delay in payments has also affected the company’s capacity to sustain operations in Hyderabad.
GHMC Issues Tender for New Streetlights Without Clearing Dues
While EESL’s contract with the GHMC runs until April 2025, the GHMC has issued a tender for the procurement of 15,000 new streetlights without clearing EESL’s dues. This move is not due to any performance issues on EESL’s part, as the company has consistently maintained the city’s streetlights and resolved complaints. Instead, the delay is attributed to the GHMC’s failure to reconcile and settle the pending payments.
EESL’s Efforts to Ensure Public Safety
EESL operates under the Energy Service Company (ESCO) model, making upfront investments and expecting monthly repayments from the GHMC. Despite the significant delays in payments, EESL has ensured public safety by addressing 98.9% of the 2,18,422 complaints received over the past eight months.
Damages to Streetlights and Financial Burden
Between September 2018 and December 2023, approximately 10,655 LED streetlights in GHMC areas were damaged due to external factors such as lightning strikes, high voltage, unauthorized handling, and accidents. These damages were verified through joint inspections by both GHMC and EESL.
EESL’s Contributions to Energy Efficiency and Environmental Protection
EESL has installed over 1.723 million streetlights across 140 Urban Local Bodies (ULBs) 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 still owes EESL Rs 314 crore across various projects, with payments delayed by 19 to 24 months.
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