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Noida authority may rope in Tata to replace streetlights with LEDs

For the last five years, the authority has been struggling to hire a private agency to replace the old streetlights and also take up the responsibility of their maintenance

noida Updated: Mar 12, 2018 23:20 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Noida authority,Tata Projects Limited,Light Emitting Diodes
Tata Projects Limited is likely to be selected to replace the existing 74,000 streetlights with LEDs.(Sunil Ghosh/HT Photo)

The Noida authority on Monday said it may soon finalise a contract with the Tata Projects Limited to replace the existing 74,000 streetlights with Light Emitting Diodes (LEDs) that consume less electricity.

The authority said it has almost completed all formalities related with hiring of the private agency for this mega project that involves replacing all streetlights and taking care of the maintenance for seven years from the date of signing the contract.

For the last five years, the authority has been struggling to hire a private agency to replace the old streetlights and also take up the responsibility of their maintenance.

The authority wants to hire a private agency for the job as its staff is unable to properly maintain streetlights, thereby causing problems for the residents. With the help of a private agency, the authority aims to reduce the electricity consumption.

“We had floated tenders thrice to hire a private agency for the job. We have found that only Tata Projects Limited applied every time for the job and, therefore, we may finalise it soon for the work. We are now finishing formalities related to the tender,” RK Mishra, additional chief executive officer, Noida authority, said.

According to officials, the authority may hire Tata Projects within a month and it is likely to start replacing the streetlights by April-end.

At present, the authority pays ₹506 crore in electricity bills for seven years to Uttar Pradesh Power Corporation Limited to keep the 74,000 streetlights functional.

“We can reduce power supply consumption as LEDs requires lesser power and we will be able to save around ₹276 crore in seven years on power bills. As per the terms and conditions, Tata will save around 60% on power bills that we now pay to UPPCL. Our understanding is that Tata will deposit 10% of the savings with the authority and the authority will pay the remaining 50% of the power bill savings to Tata in instalments,” a Noida authority official said.

As per the terms, Tata will replace 10,000-12,000 streetlights with LEDs a month. All streetlights will have to be replaced within a year of the commencement of work.

“We have roped in Indian Institute of Technology-Roorkee as energy auditor for this project. Tata will also form a special purpose vehicle for the project and the firm will be given around 8,000 square metres of land to run its office,” the official said.

First Published: Mar 12, 2018 23:20 IST