About 100 villages have been selected in Telangana where conventional bulbs and tubelights would be replaced with LED bulbs soon. Telangana, as a state, consumed electricity worth Rs 500 crores in 2016-2017. This move- facilitated by the Energy Efficient Services Limited (EESL), a government of India undertaking, will bring down the energy consumption by half.
It will be a seven-year contract with EESL. Gram panchayats need not invest a single rupee on the project. In fact, EESL will pay a penalty of Rs 5 per day to the gram panchayat if it fails to replace a non-working LED streetlight with a working one within 72-hours after receiving the complaint.
EESL will recover its money by taking 80% of the money saved by the gram panchayat on energy savings. For example, if a village is presently paying Rs 1 lakh power bill per annum, and the electricity consumption bill comes down to Rs 50,000 with LED project, the gram panchayat has to pay Rs 40,000 to EESL.