PMC’s LED project in jeopardy

ST Correspondent
Saturday, 16 September 2017

Under the project, the PMC's energy bills would be expected to reduce to half. It was launched in September last year. As per the agreement, 98.5 per cent amount from the saved energy bills will go to the M/s Tata in lieu of replacing 75,000 sodium vapour lamps with LEDs free of cost within one-and-a-half years.

Pune: The ambitious project of the civic body to replace existing sodium vapour bulbs used in street lights with LEDs may face uncertainty as the Pune Municipal Corporation (PMC) is planning to scrap the agreement on execution of the project with M/s Tata.

Under the project, the PMC's energy bills would be expected to reduce to half. It was launched in September last year. As per the agreement, 98.5 per cent amount from the saved energy bills will go to the M/s Tata in lieu of replacing 75,000 sodium vapour lamps with LEDs free of cost within one-and-a-half years.

According to the agreement, once the project gets completed, the PMC will start actual payment of the 98.5 per cent amount saved from the energy bills while the remaining 1.5 per cent will go to the PMC exchequer. So far, M/s Tata has replaced 25,000 sodium vapour lamps with LEDs, which will last for next 12 years.

Corporators Vishal Dhanawade and Sanjay Bhosale have moved a proposal before the Standing Committee demanding that the existing revenue sharing model be changed from 98.5 per cent for the private firm to 60 per cent while the remaining money should go to the PMC. 

If the civic body scraps the agreement, the project will be in jeopardy.

Sharing details of the project, a senior PMC officer said that first of all, the agreement cannot be scrapped. If it is scrapped, the civic body will have to pay the private agency for the work it has done so far. 

He said on an average, the PMC spends Rs 2 crore per month on energy bills of street lights. Once all sodium vapour lamps are replaced with LEDs, the monthly bill will be reduced by almost 50 per cent. Moreover, these LEDs will last for 12 years, which is another benefit.

Related News