GHMC’S Rs 144 crore dues pushes EESL into crisis
HYDERABAD: 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) defaulting on payments amounting to Rs 144.48 crore.
“Despite the financial challenges posed by GHMC’s delayed payments, EESL remains committed to serving Hyderabad. However, for the long-term sustainability of the project, the GHMC must fulfil its contractual obligations. We urge the GHMC to release the pending dues promptly to help us improve the city’s lighting infrastructure and meet the growing demands,” said Ramesh T, EESL state head.
The withheld payments, including those for streetlight maintenance, energy savings and penalties, have hampered EESL’s financial stability, officials said, adding that the delays have affected the project’s viability and threatened the company’s capacity to sustain operations in Hyderabad.
Sources said that though EESL’s contract runs until April 2025, the GHMC has issued a tender for the procurement of 15,000 new streetlights, costing Rs 3 crore, without clearing EESL’s dues. This move is not due to any performance issues, as EESL has been consistently maintaining the city’s streetlights and resolving complaints. Instead, the delay is attributed to GHMC’s failure to reconcile and settle the pending payments, they added.
EESL operates under the Energy Service Company (ESCO) model, wherein it made the upfront investment, expecting monthly repayments from GHMC to cover both capital and operational costs. 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, officials said.
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, unauthorised handling and accidents, which are outside EESL’s contractual obligations. These damages were verified through joint inspections by both GHMC and EESL.
The officials said 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, the sources mentioned.