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Energy Efficiency Services Limited (EESL), a joint venture under Ministry of Power, is feeling a financial stress as the Greater Hyderabad Municipal Corporation (GHMC) continues to default on its payments, with ₹144.48 crore outstanding.
Although EESL’s contract is valid until April 2025, GHMC has issued a tender for the procurement and supply of 15,000 new streetlights at a cost of ₹3 crore to meet its obligations, without settling EESL’s dues, it said in a statement. “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 statement said.
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. 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.
Telangana owes EESL ₹314 crore across various projects, with payments delayed by 19-24 months, it said. 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, the statement said.
“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 honour 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.
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