EESL Faces Financial Struggles Due to GHMC Debt Affecting LED Streetlights in Hyderabad
The Impact of GHMC Debt on EESL's Operations
The financial turmoil facing the Greater Hyderabad Municipal Corporation (GHMC) has significant implications for the Energy Efficiency Services Limited (EESL). With dues currently exceeding Rs.144.48 crore, the outlook for LED streetlights in Hyderabad looks increasingly bleak. EESL, a joint venture under the Ministry of Power, faces operational hardships due to non-payment of regular annuity amounts, which have reached Rs.57.10 crore over six months.
Continuous Commitment to Maintenance
Despite these challenges, EESL has reaffirmed its dedication to maintaining 5.48 lakh LED streetlights. The company has consistently managed to resolve 98.9% of complaints concerning streetlight issues, focusing on public safety even under precarious financial conditions.
New Tender Amidst Outstanding Payments
In an unexpected move, the GHMC has initiated a new tender for 15,000 LED streetlights worth Rs.3 crore. However, this decision comes without clearing the existing debts owed to EESL, highlighting a troubling trend in fiscal management.
Broader Financial Implications
The issue has broader implications, as Telangana owes EESL a staggering Rs.314 crore for various projects. With critical contracts slated to expire in April 2025, future collaborations will depend on improved payment frameworks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.