The Tata Projects Limited said on Monday that the failure of the Ludhiana LED project will prevent the private participants in future public-private partnership (PPP) projects.
In a statement released, the company has said that it has installed over 1.02 lakh lights in the Ludhiana LED street lighting project, also including its maintenance activity.
Since the installation of LED lights in October 2020,the administration has not paid Zones A and C's monthly maintenance. In addition, the maintenance also has not been paid for the previous six months for Zones B and D .
This negligence has unfortunately resulted in over rupees 9 crore payment being overdue to TATA projects.
This PPP project is under which it is only TATA projects has invested into the replacement of over one lakh plus lights and infrastructure.
According to the project's unique model, a portion has to be paid to TATA Projects for investing and maintaining the project and an another portion of the power savings would also be received by the administration without any investment.
The company said in the statement that despite of a winning deal for the administration, the payments were held up.
The Ludhiana SMART LED project has attained rupees 1.65 crore monthly savings for the city and its residents.
With the contract tenure at seven years, the total savings on electricity charges can be estimated at over rupees 143 crore.
Moreover, the savings on energy costs since August 2021 has already reached around rupees 13.89 crore.
The administration continues to enjoy electricity savings, due to project implementation that TATA Projects Ltd has to be paid.