Delhi: Rekha Gupta govt has a bright idea — Streetlights on EMIs

Vendors will be paid monthly; model will ensure they retain a critical stake in the performance of the lights; make them partners in accountability, says PWD Minister Parvesh Sahib Singh

Delhi streetlightsThe objective of the proposal is that the government should not have to run after contractors installing streetlights; it is they who have to fulfill their obligations (Representative image/file).

The Delhi government has devised a unique “EMI model” to pay for new smart LED streetlights installed on Public Works Department (PWD) roads, under which contractors who install the lights will be paid monthly, after they have ensured that they remain fully lit.

Currently, the government makes bulk advance payments to private companies or contractors who install and maintain the lights, PWD Minister Parvesh Sahib Singh said.

“The idea is that the government should not have to run after contractors; it is they who have to fulfill their obligations… Under this framework, the private company installing the lights will receive monthly EMI payments only after the lights are fully operational with 40 lux, ensuring that the company remains responsible for upkeep, performance, and timely maintenance,” the Minister told The Indian Express.

Singh said the average brightness provided by streetlights in Delhi is only 10-15 lux, far less than the 40 lux ideal for flyovers, highways, and main roads. Lux is the SI unit for illuminance, and is used to assess brightness as perceived by the human eye.

 

 

Delhi Infrastructure
PWD Roads to Get Smart LED Makeover
Delhi's PWD plans to replace all streetlights with energy-efficient smart LEDs in a ₹400 crore overhaul
💡
1 Lakh
Total lights on PWD roads — ALL to be upgraded
Current Light Breakdown
Sodium 50%
Others 50%
 
50,000
Old yellow sodium vapour lights — inefficient, to be replaced
 
50,000
Other existing lights — also being upgraded to smart LEDs
Estimated Project Cost
🏛️
₹400 Cr
Total estimated investment for full LED rollout across all PWD roads in Delhi
What Happens Next
Step 01 · Now
EFC Meeting
Proposal to be placed before Expenditure Finance Committee for approval
⏳ Pending
Step 02 · After Clearance
Tenders Float
Tenders to be issued within 15 days of EFC clearance
⚡ 15 Days

What the proposal entails

Under the proposal prepared by the PWD, the vendor will be required to install and maintain streetlights constantly at 40 lux, under monitoring by a supervisory control and data acquisition (SCADA) architecture.

The proposal will be presented in the next meeting of the Expenditure Finance Committee (EFC), and tenders will be floated in 10-15 days after final approval is received, the Minister said.
Roads in Delhi come under multiple agencies, including PWD, DDA, NDMC and MCD. While PWD maintains around 1,400 km of main roads, which includes flyovers and underpasses, MCD is usually responsible for internal and colony roads. The DDA, meanwhile, looks after roads that fall under its jurisdiction, like those in Dwarka sub-city and Rohini, among others.

There are around 1 lakh streetlights on PWD roads, and many of them are old high-pressure sodium vapour (HPSV) fittings. All lights under the PWD will be replaced with the energy-efficient smart LEDs that will ensure brighter illumination, lower electricity consumption, and longer lifespans, officials said.

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“These days, everything from homes to household appliances is available on EMIs, so why not streetlights,” the Minister said. “Tenders will be floated soon, and the payment will be done on the EMI model… This will be a first for the country,” Singh said.

Vendor must repair faulty streetlights

The tender will also have a condition requiring the vendor to replace a faulty or malfunctioning LED within 24 hours. “We have held meetings with prospective companies, and they have agreed to this condition,” Singh said.

The expected cost of the project is Rs 400 crore. Officials flagged the large potential economic benefits of the transition. Back-of-the envelope calculations show the switch from HPSV to smart LEDs will lead to savings of around Rs 31.53 crore annually in electricity and maintenance costs. This, they said, would allow the government to invest more resources into critical infrastructure and welfare projects.

Each smartlight will be connected to a centralised dashboard and control room, which will allow officials to monitor them in real time, detect faults instantly, and ensure immediate repair. Citizens will also be able to view the status of streetlights in their area and register complaints, which will be resolved in a time-bound fashion, officials said.

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“With this model, we are changing not just fittings, but the very system of governance. The EMI model will ensure that companies retain a critical stake in the performance of the lights, and make them partners in accountability. For the first time, citizens themselves will be able to see, monitor, and question the system in real time. This is transparency in its truest form…

“Currently, governments spend money upfront, and the public has to wait endlessly for results… Now, things will work differently – install, prove performance, and only then will payments be made. This approach makes sure that taxpayers’ money is used honestly and efficiently,” the Minister said.

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