In a novel approach Andhra Pradesh government is planning to convert all the conventional street lights by LED street lights without putting any burden on the Gram Panchayats. In the first phase the project will be implemented in 650 Gram Panchayats. Today government has given clearance to initiate the process. The Panchayat Raj department is expected issue notification inviting Expression Of Interest (EOI) from interested companies through e-procurement platform for conversion of existing conventional street lights into LED street lights in selected Gram Panchayats in the State of Andhra Pradesh.
Though the cost of the project runs into crores, the amount would be payable in Annuity basis a EMI to the company who bears the cost of the project. The EMI is will be paid from the savings of the power that results from the replacement of conventional streets by LED lights. There are 28 Lakhs (approx) electrical poles in the Gram Panchayats in State and 21 Lakhs (Approx) poles were fitted with Street Lights. The estimated cost of LED Street Lights throughout Andhra Pradesh is Rs.630 Crore at the rate of Rs.100 per watts (30 watts X 21,00,000 x 100). At present on an average Rs.200 crore to Rs 250 Crore is being paid as Current Consumption Charges by the Gram Panchayats per year, and when the LED Street lights are fixed, the CC Charges are expected to come down by 45 to 55% i.e Rs.100 crore to Rs 150 Crore. Then expected savings in 10 years is Rs 1000 Crores.
Andhra Pradesh has 12,900 Gram Panchayats out of which 650 Gram Panchayats are large in terms of population. The project envisages payment for the capital cost to be made from the savings of current consumption charges which are being paid by the respective Gram Panchayats.
1.In the long run the financial health of Grama Panchayat will be improved as the cost on the power would come to half with 40% to 50% saving.
2. Energy saving to the tune of 84 Mega Watt. This power savings can be in turn used for industry, agriculture or other sectors and trigger GDP Growth to generate income.
