HYDERABAD: Energy Efficiency Services Limited (EESL), a joint venture under the Ministry of Power, is grappling with a significant financial crisis due to the Greater Hyderabad Municipal Corporation (GHMC) defaulting on payments totaling ₹144.48 crore.  
“Despite the financial challenges caused by GHMC’s delayed payments, EESL remains dedicated to serving Hyderabad. However, for the long-term sustainability of the project, the GHMC must fulfill its contractual obligations. We urge the GHMC to promptly release the pending dues to help us enhance the city’s lighting infrastructure and meet growing demands,” stated Ramesh T, EESL's state head.  
Officials report that the withheld payments, which include those for streetlight maintenance, energy savings, and penalties, have severely impacted EESL’s financial stability. The delays jeopardize the project's viability and threaten the company’s ability to maintain operations in Hyderabad.  
Sources indicate that although EESL’s contract is valid until April 2025, the GHMC has issued a tender for the procurement of 15,000 new streetlights, costing ₹3 crore, without settling EESL’s dues. This decision is not a reflection of EESL’s performance, as the company has consistently maintained the city's streetlights and addressed complaints. Instead, the delays stem from GHMC’s inability to reconcile and settle outstanding payments.  
EESL operates under the Energy Service Company (ESCO) model, where it made an upfront investment, expecting monthly repayments from GHMC to cover both capital and operational costs. Despite the substantial delays, EESL has maintained public safety by resolving 98.9% of the 218,422 complaints received over the past eight months.  
Between September 2018 and December 2023, approximately 10,655 LED streetlights in GHMC areas were damaged due to external factors like lightning strikes, high voltage, unauthorized handling, and accidents, which fall outside EESL’s contractual responsibilities. These damages have been verified through joint inspections by both GHMC and EESL.  
EESL has installed over 1.723 million streetlights across 140 Urban Local Bodies (ULBs) in Telangana, including GHMC, resulting in an estimated annual savings of 193 MW of peak power and a reduction of 0.81 million tons of CO2 emissions. However, Telangana still owes EESL ₹314 crore across various projects, with payments delayed by 19 to 24 months.