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LED streetlights' economic model not yet finalised for Kolhapur

LED streetlights’ economic model not yet finalised for Kolhapur

By BizLED Bureau

Mar 9, 2016: The city of Kolhapur in the Indian state, Maharashtra, is waiting to find a sustainable economic model to install LED streetlights in the city. The municipal council appointed a firm for the installation project and launched the tenders over a year ago. The total budget was kept at US$ 4.12 million but the authority is yet to receive any substantial response for the project.

The Kolhapur Municipal Corporation (KMC) has considered two economic models for the project. First is, enabling a private player to invest in the project financially and be paid from KMC saved power consumption and electricity costs. The second plan involves seeking funds from the government and the other is to execute the project on a public-private-partnership (PPP).

READ ALSO: LED streetlights will illuminate 43,665 villages in Maharashtra

KMC’s chief city engineer spoke to the media about the project. He said the state government suggested appointing a body to undertake the work. But the standing committee rejected the idea and now KMC will rework on the project.

Under the current plan, KMC will upgrade 23,000 sodium vapor lamps with LED lights over a 10-year period. This will reduce 50% of the electricity bill for streetlights. The first phase of the plan will cover suburbs and newly developing areas without streetlights.

READ ALSO: UP govt waives VAT on LED bulbs under DELP

Officials at KMC are clear that the state government will not support KMC to execute the project. Corporators are apprehensive about executing the project on PPP basis as no other municipal corporation has executed such a project using this model.

The streetlights in the city are not functioning due to high maintenance costs. There are close to 60,000 streetlights across the city. According to an official, the appointed firm will cover the streetlight maintenance for ten years. The company will be able to recover the amount it invests within the first seven years.

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