PROPOSAL

REPLACEMENT OF CONVENTIONAL STREET LIGHTS WITH

SMART LED STREETLIGHT PROJECT IN MUNICIPALITIES OF
GOVT OF BIHAR

Submitted to:

Housing & Urban Development Department,

Government of Bihar
Secretariat Building, Patna

By

Energy Efficiency Services Ltd.

(A Joint Venture of PSUs of Ministry of Power - Govt. of India)
4th Floor, IWAI Building, A-13, Sector-1,
Noida-201301, (UP)

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 CONTENTS
1. EXECUTIVE SUMMARY .......................................................................................................................3

2. BACKGROUND ........................................................................................................................................3

3. INTRODUCTION .....................................................................................................................................5

4. ENERGY EFFICIENCY SERVICES LIMITED (EESL)..................................................................6

5. EESL METHODOLOGY FOR STREET LIGHTING PROGRAMME .......................................7

(I) EESL IMPLEMENTATION MODEL..................................................................................................7

(II) PAYMENT TERMS FOR PROJECT MANAGEMENT CHARGES:ERROR! BOOKMARK NOT

DEFINED.

(III) SERVICE LEVEL AGREEMENT:.......................................................................................................8

(IV) PAYMENT SECURITY MECHANISM: ............................................................................................8

(V) PROCUREMENT PROCESS FOLLOWED BY EESL:...................................................................9

(VI) SCOPE OF WORK ..................................................................................................................................9

(VII) PROJECT PHASES AND RESOURCE PLANNING OF EESL. ............................................. 10

6. TIME SCHEDULE ................................................................................................................................. 11

7. PROJECT IMPLEMENTATION DELIVERABLES..................................................................... 11

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1. EXECUTIVE SUMMARY

1. Background

Honble Prime Minister, on 5th January, 2015 launched 100 cities National LED Programmers
which has two components, (i) Domestic Efficient Lighting Programmer (DELP) to provide
LED bulbs to domestic consumers aiming to replace 77 crore incandescent bulbs with LED
bulbs and (ii) Street Lighting National programmer (SLNP) to replace 3.5 crore conventional
street lights with smart and energy efficient LED street lights by March, 2019. This will result
in annual electricity saving of about 109 billion units and 21,500 MW reduction in demand and
GHG emission reduction of 85 million ton of CO2 along with monetary savings of Rs. 45,500
Crore accruing to domestic consumers and Urban Local Bodies. The objectives of National LED
programmer are:

Promote the use of the most efficient lighting technology at affordable rates to consumers
Reduce energy consumption in lighting which helps DISCOMs to manage peak demand
Enhance the awareness of consumers about the efficacy of using efficient appliances
Increase the demand of LED lights by aggregating requirements across the country and
reduce costs; in fact cost have already reduced over 80% in last 2 years
Encourage and support domestic manufacturing of LED bulbs by sustaining demand making
it consistent with the Make in India policy of the Government
Create robust arrangements for monitoring and verification of energy savings in a simple
and transparent manner
EESL has evolved a service model to enable municipalities to replace conventional lights with
LEDs at no upfront cost. The balance cost is recovered through the municipalities by monetising
the energy savings. As on date, EESL has replaced over 14.5 lakh conventional street lights with
LEDs in over 100 Urban Local Bodies (ULBs).
2. Implementation Process:
The implementation process was discussed in the meeting chaired by Principal Secretary (UD
& HD) in Patna on 30th November, 2016 and it was desired that based on the proposal of
Bihar Sharif Municipal Corporation from EESL for implementation of the programme, UD & HD
will work out to implement the project in other cities i.e. ULBs.
EESL already signed implementation agreement with Bihar Sharif Municipal Corporation in
2015, but due to lack of infrastructure, implementation couldnt be proceed.

EESL Annuity Model: This is the model that EESL is working with all its existing project
where the entire upfront investment is made by EESL and the ULBs pay over a 7 year period
from savings in electricity and maintenance cost. Apart from this 3% of the total projects
will be charged as AMC annually.

Entire investment by UD & HD with PMC and AMC by EESL: The entire capital
investment will be done by ULBs or UD & HD, EESL will charge 10% of the total project cost

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 As administrative charges, 3% of the total project cost as PMC charges. Apart from this 3%
Of the total projects will be charged as AMC annually.

3. Determination of Baseline
Based on the streetlight inventory information as provided by ULBs/Survey, the project
baseline has been structured with an assumption that 100% existing streetlights are
operational.

4. Selection of Implementing Agency

EESL follows the procurement process prescribed by the Government of India as per the
procurement policy approved by its board of directors. All procurements above Rs. 15 lakhs are
done through open competitive bidding process. EESL is audited by CAG and follows all the
guidance issued by CVC from time to time. In order to further enhance transparency of
procurements. EESL has adopted e-procurement for all goods and services and that has resulted
in rationalisation of prices benefits of which are passed on to the states/ ULBs.

5. Guarantee of energy savings

EESL guarantees a minimum energy savings of 50% and would offer the same to ULBs.

6. Financial model

As mentioned in para 2, where EESL makes the entire upfront investment, the annuity of EESL
Would be calculated on the following principles:

Actual capital cost discovered by a transparent and open e-bidding process.

Funding of the project on debt: equity ratio of 80:20
Return of equity to be 14% post tax
Interest on debt would be on actuals, project management charges (3%) & annual
maintenance charges (3%) respectively.

Warranty on luminaries would be 7 years during which EESL will also ensure maintenance of
the lights. EESL will also take insurance policy to cover natural calamities and other acts like
fire etc. but will not be included theft and pilferage with additional cost. Based on experience
of EESL in most of MCs the bracket/Arm of fixture is damaged so the change of Bracket/Arm
will take additional cost which is not included in the project cost, the ULBs or UDD will take care
from the existing vendors.

7. Energy Savings
Based on the survey conducted in Bihar Sharif Municipal Corporation. The Annual energy and
cost savings are estimated as under:
Annuity Model:

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 For 2127 nos. of Street lights

1. Existing no. of Street Lights - 2127 Nos.

2. Existing energy consumption based on 100% burning of lights - 0.93 MU
3. Existing Connected Load - 0.23 MW
4. Existing annual energy cost (@ Rs. 4400 per kW per month) - Rs. 1.22 crores
5. Existing annual maintenance cost - Rs. 40 Lac
6. Energy consumption after replacement - 0.43 MU
7. Connected Load after replacement - 0.11 MW
8. Energy cost after replacement (Metered) - Rs. 30.12 Lac
9. Maintenance cost after replacement - Nil
10. Savings to ULBs - Rs. 131.88 Lac
11. EESL Annuity (Annual for 7 years) - Rs. 33.34 Lac
12. Net saving to ULBs - Rs. 98.54 Lac
13. Investment by EESL - Rs. 1.21 Crore
14. Repayment in 7 Years (Including AMC and taxes) - Rs. 2.34 Crore
15. Net Present Value of Repayment in 7 years - Rs. 3.33 Lac
16. Savings in 7 Years - Rs. 6.67 Crore

For 5257 nos. of Street lights

1. Existing no. of Street Lights - 5257 nos.

2. Existing energy consumption based on 100% burning of lights - 3 MUs
3. Existing Connected Load - 0.75 MW
4. Existing annual energy cost including the fixed charges - Rs. 4.03 crores
@ Rs. 4400 per kW per month & Maintenance
5. Energy consumption after replacement - 1.26 MU
6. Connected Load after replacement - 0.31 MW
7. Maintenance cost after replacement - Nil
8. Monetary Saving to ULB - Rs. 2.33 Cr
9. EESL Annuity (Annual for 7 years) - Rs. 93.44 Lac
10.Net saving to ULBs - Rs. 1.39 Cr
11.Investment by EESL - Rs. 3.57 Crore
12.Repayment in 7 Years (Including AMC and taxes) - Rs. 6.57 Crore
13.Net Impact on Savings in 7 Years - Rs. 11.29 Crore

The savings predicted above are based on deemed saving approach. Actual saving may differ from
the predicted saving. Under IDC EESL will use 10% of total project cost for Arms, clamps and 3 mtr
wire (i.e. from Street Light Phase wire to Luminaire) wherever required. Any other IDC work i.e.
poles,cables,switching points,MCB,Earthing or any other work will be bear by Nagar Nigam. EESL
will undertake such work on upfront basis as signing separate agreement for IDC only (i.e. Cost of
the same will be paid to EESL on upfront at actuals).AMC charges including fixtures and accessories
shall be 3% of the total project cost per annum , throughout the contract period.
Other options are placed under section 7.

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2. INTRODUCTION

India faces formidable challenge in meeting its energy needs and in providing adequate energy
of desired quality in various forms in a sustainable manner and at competitive prices. In all
sectors of the economy, improving energy efficiency before increasing the energy supply is
generally the more economically and environmentally efficient national strategy. The emphasis,
for the future, is to look for technologies to promote energy efficiency, demand side
management and conservation. The success of Government of Indias plan depends upon
effective policy framework, implementation and promotion of energy efficiency initiatives.
Energy efficiency assumes significance for the nation in the current environment of shortages
and concerns over climate change. It is a win-win situation for all for facility owners increased
energy efficiency means availability of more resources and for nations energy efficiency offers a
number of benefits including improved use of natural resources, reducing energy imports,
improved balance of trade, conservation of foreign exchange, reduced capital requirement for
new energy production facilities, and reduced environmental pollution from energy use, and
production.
In India, street lighting sector offers a significant potential of energy efficiency and cost savings.
As per the 18th Electric Power Survey of CEA, the estimated energy consumption in Indian public
lighting sector with 2009-10 as the base year will consume about 8478 M KWh in 2012-
13 and will grow at a CAGR of 7% during the XII and XIII plan periods. Retrofitting the entire
conventional street lights with LEDs has the potential to save about 50% of energy amounting
to approximately 4300 million KWh annually at the national level. It is also possible to optimize
the operational performance leading to additional savings through twilight switching controls,
dimming and voltage optimization. This usually leads to an additional 15-20% of savings over

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 And above the savings achieved by lamp replacement. The total opportunity of energy savings could,
at the national level, increase from 4300 MKWh to about 5000 MKWh annually.

3. ENERGY EFFICIENCY SERVICES LIMITED (EESL)

Energy Efficiency Services Limited (EESL) has been setup by Ministry of Power (MOP), Government of India, as
the implementation arm of (MOP) Ministry of Power and (BEE) Bureau of Energy Efficiency. The objective of the
EESL is to lead the market related action of the National Mission for Enhanced Energy Efficiency (NMEEE) as well
as to create and sustain markets for energy efficiency.

Energy Efficiency Services Limited (EESL) under the aegis of MOP is a joint venture company promoted by 4
Central Public Sector Undertakings (CPSUs), namely NTPC Limited, Power Grid Corporation of India Limited
(PGCIL), Power Finance Corporation Limited (PFC Limited) and Rural Electrification Corporation (REC).
NTPC

PGCIL EESL PFC

REC

The objectives of EESL:

To facilitate preparation of energy efficiency projects for Demand Side Measures including municipal
functions, agriculture, public building, lighting etc.
To implement schemes, programmes and policies of central and state governments or its agencies.
Partner with private ESCOs and other companies to promote energy efficiency.
To provide consultancy services in the field of energy efficiency, CDM projects, and other related areas.
To identify and impart training to build the capacity of stakeholders

Organisational Capability:
EESL has a team of technical professionals drawn from diverse industrial backgrounds with strong energy auditing
capabilities. The multi-disciplinary team with significant experience in their respective domains would aid in
development of deliverables of quality work. Our area of expertise range from MSMEs to large industries and
municipal functions to agriculture. We have a wide array of projects in diverse sectors and have an esteemed
clientele list including industries, MSMEs, Central Government Agencies, State Governments and DISCOMs.
Providing full technical support and pooling all resources required to achieve projected savings remains
paramount to EESL, during the entire agreed contract period, for the success of each project EESL.

EESL works in close association with various Central/State Government Authorities, DISCOMs, Multinational
Agencies and Industry on energy efficiency projects. Energy Efficiency Services Limited has conducted over 500
audits for benchmarking energy performance targets for industries which included the energy audit and base
lining of these industries under PAT scheme of BEE. EESL has prepared Energy Savings Plan for about 12 States
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 through State Designated Agencies. Energy Savings Plan involves sector specific load profiling, analysis, energy
audit; potential assessment, benefit analysis and phased manner implementation plan. Further EESL has also
executed extensive energy assessment for industry waste heat recovery projects, energy audits of MuDSM,
AgDSM and Building Energy Efficiency projects.

EESL has executed energy efficient street lighting project at Vishakhapatnam, Puduchhery, Arunachal Pradesh,
and executing similar projects in South Delhi Municipal Corporation, Kerala, Rajasthan, Tripura and Andhra
Pradesh.

4. EESL METHODOLOGY FOR STREET LIGHTING PROGRAMME

(I) EESL Implementation Model

EESL Annuity Model: This is the model that EESL is working with all its existing project
where the entire upfront investment is made by EESL and the ULBs pay over a 7 year
period from savings in elecrticity and maintenance cost. If this model is applied, the
estimated investment by EESL is Rs. 43.16 crores and the annual payments of annuity are
estimated at around Rs. 11.83 crore for 7 year including R&M.

Financial Parameter for Annuity model: While preparing the tentative financials following
are the parameter we consider based on our previous tender experience,

Project cost contains= Cost of Luminaries+ CCMS/ Astronomical Timer (switch point wise) cost
+3 % PMC

Capital investment Debt: Equity ratio is 80:20, repayment include the10% per annum is rate of
coupan for Debt, 14 % IRR is on equity, 3% of the project cost per annum as Annual Maintenance
Cost (AMC) and applicable taxes.

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PMC with 7Year R&M: Under the second model scope of works & services are similar to
Annuity Model except capital investment. The entire capital investment will be done by UD &
HD or ULBs. Whereas

EESL will charge 10% of the project cost as administrative charges and
3% of the project cost as PMC charges. The project cost comprising the cost of luminaire
system & Infrastructure Development Cost.
On request of ULBs or UD & HD, EESL will take care of the AMC @3% of the project cost
per annum. AMC will be paid monthly or quarterly basis which is escalating @6% of AMC
annually.

(II) SERVICE LEVEL AGREEMENT:

A service level agreement has to sign between EESL & ULBs to take the project
execution in corporation areas. Following are the important points in the
agreement,

a) The EESL shall ensure that for the entire agreement period, the LED streetlight fixtures
supplied and installed shall conform to technical standards.
b) The EESL shall extend warranty to the LED streetlight fixtures supplied throughout the
agreement period (i.e., 7 years) covering any manufacturing defects. The warranty shall
be limited to only manufacturing defects. Further the warranty shall also be not
applicable for any damage or malfunctioning of LED streetlight fixtures on account of
lightning strike, fire or any kind of Act of God beyond the control of either of the Parties
including adverse weather conditions, earth quakes, rains, tempest, whirlwind,
landslides, storms, volcanic eruptions, fire or any calamities, riots, high voltage, phase-
to-phase voltage, unauthorized handling, accidents and thefts. It is only for option A &
for rest options as mentioned in the model.
c) In the event of any dispute about the performance/efficiency of any luminary supplied
under the agreement such luminary shall be tested on calibrated watt meter for
verification of consumption of power in Watts. If the luminary fails to the agreed
specification the "EESL" shall rectify or replace it in terms of warranty at its own cost
throughout the agreement period.
d) EESL assures a minimum energy savings of 50% - 55% from the existing energy
consumption at the time of installation. This reduction of energy consumption will be
verified on representative basis by an independent agency appointed by EESL and ULBs.
e) EESL shall maintain all the retrofit LED lights during the entire contract period at
additional cost to ULBs in case of all option as mentioned period.
f) EESL shall provide a system of remote switching on-off of all lights along with real time
monitoring.
g) EESL shall take an insurance policy to cover for any failure of lighting in addition to the
warranty or manufacturing defect. This shall be charge additionally to ULBs as actual
basis.

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 h) The installation of CCMS system/ Astronomical timers will be on switch point-wise.

(III) PAYMENT SECURITY MECHANISM:

Option A-In order to ensure that a robust payment security mechanism is in place, EESL
requires an ESCROW account / Bank Guarantee/ State Govt Assurance for payments which will
have a balance of six months of annuity and that will be reviewed annually or State Government
Guarantee for covering the capital cost of the project to secure its investment.

In addition to the above, the implementation agreement has provisions for mitigating defaults
by having revolving L/C arrangements.

(IV) PROCUREMENT PROCESS FOLLOWED BY EESL:

EESL follows the procurement process as prescribed by the Government of India as per the
procurement policy approved by its board of directors. All procurements above Rs.15 lakhs are
done through open competitive e-bidding process. EESL is audited by CAG and follows all the
guidelines issued by CVC from time to time. In order to further enhance transparency of
procurements, EESL has offered to various state governments and agencies to include a
member from their organisation in the tender preparation, evaluation and finalisation
committee to EESL. We would like to request ULBs to also nominate an official in the tender
committee of EESL.

(V) SCOPE OF WORK

Scope of work will essentially consist of two major activities depend upon the model chosen
& the discussion with ULBs:

1. Selection of Implementing Partner.

2. Project Management & Implementation

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 1. Selection of Implementing Partner
Procurement process, selection
of implementing partner.
2. Project Management & Implementation
Project coordination,
implementation, monitoring and
maintenance support.
Procurement services
EESL shall undertake the following;
Preparation of Technical Specification Document
Preparation of Inspection Plan
Preparation of Bidding Document
Technical and Financial Evaluation
Bid process management
EESL shall carry out competitive bidding process for selection of
implementing partner involving;
Preparation of Request for Proposal (RFP) Document
Evaluation of proposals/bids submitted by
Applicants/Bidders
Preparation of Project Information Memorandum to be
enclosed with the RFP Document
Preparation of draft agreement to be enclosed with the RFP
Document
Evaluation of qualification/proposal submissions by
Bidders
Finalization of successful bidder and signing of Agreement
Project planning and execution.
EESL will prepare a detailed implementation plan for the
project with time bound project milestones and deliverables.
Quality Inspection Plan
EESL will carry out the quality inspection and quality check
of LED streetlights intended for project use at various stages
viz., during manufacturing, pre-dispatch and at installation
sites. The product performance shall also be validated
through independent testing of the product under testing
protocol of EESL from NABL accredited laboratory.
Performance Monitoring
Post installation, energy and lux measurement shall be carried
out to ascertain the performance of the installed LED
streetlights.

EESL would provide the following technical performance to ULBs after installation of LED
Street Lights.
Free O& M support during the project period.
Free replacement warranty of street lights for technical defects.
Uptime of street light by more than

(VI) Project phases and resource planning of EESL.

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 1. Preparatory phase:
(Preparation of tender documents, tender evaluation and finalisation)
EESL shall involve their technical, finance and contracts resource for preparatory phase.
This activity shall mainly be facilitated through EESL corporate office.

2. Project phase:
(Planning, team scheduling, work plan and implementation)
Project Head and Manager shall administer the project planning, team mobilization,
reporting structure and implementation monitoring.
Project coordination team shall be mobilised after selection of suppliers to chart out the
work plan region wise in consultation with municipal corporations.
Daily reporting.
Review of installations.
Coordination with suppliers.
Weekly installation plan.
Infrastructure requirements assessments.
Verification of installation with Municipal Corporation and Suppliers.

Quality supervisors shall be responsible for quality inspection during dispatches (pre-
dispatch inspection), site and installation inspection besides testing coordinating testing
of supplied samples from an independent NABL accredited laboratories for technical
conformance checks.
Inventory supervisor shall be arranged to categorically structure the storage space in
consultation with Municipal Corporation and engaged suppliers, logistics planning and
inventory management.
Project engineers shall coordinate with the suppliers installation team for LED retrofits
Project area mapping/survey with Municipal Corporation and Suppliers for
installation.
Switching point mapping in consultation with Municipal Corporation.
Coordination with Municipal Corporation field staff for necessary line clearance for
LED installation.
Routine follow-ups with suppliers and Municipal Corporation to ensue
implementation.
EESL will ensure the Repair & Maintenance of the installed street light of Municipal
Corporations till mentioned year with the additional 3% of the Project cost plus
applicable taxes annually.

5. TIME SCHEDULE

EESL will start the procurement activity after signing of agreement and further start the
implementation within 45 days of the signing of agreement & opening of ESCROW account or
getting LC / BG from respective ULBs or UDD.

6. PROJECT IMPLEMENTATION DELIVERABLES

EESL shall retrofit all existing conventional streetlight fixture excluding LED fixtures
installed in the jurisdiction of ULBs with LED streetlight fixtures.
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 The LED fixtures shall be replaced as point to point replacement of existing conventional
fixture i.e., both functional/non-functional fixtures shall be considered for replacement.
EESL shall ensure supply of energy efficient LED luminaries complete with all
accessories for street light installation.
Based on our experience in general the existing cables are very old, punctured at many
places, and are damaged, therefore the existing cable work needs to be changed with
new cable. ULBs have to ensure cabling arrangements at their own; where ever
necessary for installation of LED fixtures as replacement of conventional fixtures. If in
case EESL is asked to do the replacement then, there would be an additional cost
implication over & above the current projected financial cost in this proposal.
The replacement wattage of the LED streetlight fixtures may either be higher/lesser
than the existing streetlight fixture wattage in order to improve the illumination level as
compared to existing lux levels. The output of the LED lux level shall meet the standards,
where the pole configuration are as per NLC/IS or better the existing light level.
In case the existing pole configuration is not meeting the standards as per NLC/IS,
recommendations shall be given by EESL for suitable modification of the pole
configuration which needs to be implemented by ULBs if technically feasible at their
cost.
EESL would install central control & monitoring system (CCMS) which will have the
following key features:
a. Remote ON/OFF arrangement
b. Individual luminaire level controller with features to programme step/stage
dimming.
c. Energy measurement
d. Fault logics and alert notification to trace the luminaire level fault monitoring.

Benefits of LED based street lighting retrofit solutions:

An energy efficient public lighting system brings very strong positive externalities for society
as indicated below:

a. Reduction in energy consumption and costs: LED based energy efficient lighting
systems consume significantly less energy which is up to 45% - 55% lower compared to
the older and inefficient systems installed.
b. Optimising Operational Performance: LED technology enables introduction of
measures to optimize light sources and thereby use minimum intensity necessary to
accomplish the requirement. It also can be integrated with centralized monitoring and
control that could enable dimming and turning lights off using a timer or sensor when
not needed.
c. Social benefits: In addition to the benefits accrued from the savings in energy there are
also benefits that enhance/ improve the quality of light and thereby the safety aspects
in public places.
d. Reduced operation and maintenance cost: The life of such lighting systems is longer
and requires less maintenance bringing down operation as well as lifetime costs.

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 7. SURVEY OBSERVATIONS- Bihar Sharif Municipal Corporation

Existing Inventory
Total No. of Wards = 46
Total No. of Poles = 5179
Total No. of poles with lights = 2049
Total No. of Vacant poles = 3130

DifferentTypesofPoles:
1. Rail Pole : Above 3000
2. RCC Pole : between 1500 - 2000
3. Round pole : between 30 50

Observations:
1. Need New ARMs and Clamps for all lights.
2. Arms and lights are available on 2049 Poles.
3. All the existing Arm and Clamp needs replacement not compatible with the new luminaire.
4. Most of the lights are CFLs of 65 watt & 85 watt but the area is under illumination.

LuminaireRequirement:
S.No. Existing Proposed Nos. Remarks
1 250 W HPSV Lamp 120 W LED 120
2 CFL Fittings (1x85W) 40 W LED 1929 Under illuminated Area,
75W LED is
3 400 W HPMV Lamp 200 W LED 78 High Mast
4 Blank Poles 75W LED 3130
5257

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Basic Infrastructure Requirement:
Note: From the survey conducted by EESL, it is evident that following infrastructure may
require to maintain the street light operational successfully. Following rates were captured from
the current market rates. However, it is suggested that ULB to undertake the necessary
infrastructure work at their own. EESL may undertake the necessary infrastructure work at
Upfront Cost for all ULBs.

Total No. of Lights to be

retrofitted 5179
Infrastructure Component
Supply Installation
Particulars Unit Qty. Total (Rs.)
Rate Rate
Supply & Installation of Pipe
Earthing (40 dia 2.5m ling GI pipe Nos 170 2,000 1,000 510000
for CCMS earthing)
Supply & Installation of Street
Lighting 4C x 6 sqmm Copper M 210000 400 50 94500000
Armoured cable for Supply
Feeder.

Hot dip galvanised octagonal

Pole: Single Arm Decorative
Bracket. As per
Nos 12,000 6,500
7mtr high poles with 130 mm requirement
bottom A/F & 70 mm top A/F
made up of 3mm thk.

Hot dip galvanized octagonal

Pole: Double Arm Decorative
Bracket. As per
Nos 13,500 6,500
7mtr high poles with 130 mm requirement
bottom A/F & 70 mm top A/F
made up of 3mm thk.

Hot dip galvanized octagonal

Pole: Double Arm Standard
Bracket. As per
Nos 9,500 6,500
7mtr high poles with 130 mm requirement
bottom A/F & 70 mm top A/F
made up of 3mm thk.

MS Tubular Poles (Height 7.5 As per

Nos 6,000 5,500
mtr): Single Arm Standard Bracket requirement

TOTAL 95010000

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 Note:
1. All rates are for estimate purpose only. All equipments/material shall be procured through open
tender. Final Rates discovered in the bidding process shall be applicable.
2. Actual quantity shall be determined during implementation and the same shall be considered
for final billing purpose.
3. The Infrastructure component expenses shall not be a part of Annuity model and shall be paid
on Upfront basis.
4. EESL shall charge 10% service change and Project Management Charge & AMC each @ 3% on the
total Infrastructure expense.
5. Earthing has been considered for CCMS only.
6. Pole earthing shall be taken from the existing earthing from overhead line. In case of separate pole
earthing, additional charges shall apply as per actuals.

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Comparative Implementation Options:

Option-1:
S.No. Existing Proposed Nos. Remarks
1 250 W HPSV Lamp 120 W LED 120
2 CFL Fittings (1x85W) 40 W LED 1929
3 400 W HPMV Lamp 200 W LED 78 High Mast
4 Blank Poles 75W LED
2127

Existing conditions Expected conditions ( after the project)

(before the project)
Without CCMS With CCMS
Unmetered Billing* Unmetered Billing* Metered Billing*
No. of Street Lights 2049 + 78 = 2127 2127 2127
Wattage of Street 232 kW 107 kW 107 kW
Lights
Annual Electricity 122 Lac 57 Lac 30 Lac
Bill
Electricity bill raised 54 Lac per annum 57 Lac 30 Lac
by DISCOM (i.e. 4.5 Lac per (i.e. 4.75 Lac per (i.e. 2.5 Lac per
month) month) month)
AT&C Losses to 80 Lac per annum 0 0
DISCOM Note: Inventory not updated Note: Remote metering is
to DISCOM possible
Project Cost 1.21 Crore without 1.21 Crore with
CCMS CCMS
(includes Arm, Clamp, Bolts, (includes Arm, Clamp, Bolts,
connecting wires, connectors) connecting wires,
connectors)
Infrastructure 1.25 Crore 9.5 Crore
Development Cost (This is required for neutral wire (This is required for feeder
on each pole) Cable on each pole)
required
Total Project Cost 2.5 Crore approx. 10.71 Crore approx.

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Option-2:
S.No. Existing Proposed Nos. Remarks
1 250 W HPSV Lamp 120 W LED 120
2 CFL Fittings (1x85W) 40 W LED 1929
3 400 W HPMV Lamp 200 W LED 78 High Mast
4 Blank Poles 75W LED 3130
5257

Existing conditions Expected conditions ( after the project)

(before the project)
Without CCMS With CCMS
Unmetered Billing* Unmetered Billing* Metered Billing*
No. of Street Lights 2049 + 78 = 2127 5257 5257
Wattage of Street 232 kW 342 kW 342 kW
Lights
Annual Electricity 122 Lac 180.5 Lac 96 Lac
Bill
Electricity bill 54 Lac per annum 180.5 Lac (i.e. 96 Lac
raised by DISCOM (i.e. 4.5 Lac per 15 Lac per (i.e. 8 Lac per month)
month) month)
AT&C Losses to 80 Lac per annum 0 0
DISCOM Note: Inventory not updated
to DISCOM
Project Cost 3.57 Crore without 3.57 Crore with CCMS
CCMS (includes Arm, Clamp, Bolts,
(includes Arm, Clamp, Bolts, connecting wires, connectors)
connecting wires, connectors)
Infrastructure 1.25 Crore 9.5 Crore
Development Cost (This is required for neutral (This is required for feeder Cable
wire on each pole) on each pole)
required
Total Project Cost 4.82 Crore approx. 13.07 Crore approx.

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19 | P a g e
 Snapshot from Deoghar, Jharkhand

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 Option-1
Annexure-1:
Energy Saving Basis

Ba sis of Energy Saving Ca lculations:

Re placeme nt of Conventiona l Street Lighting w ith LED Street Lighting Systems in Biha r Sharif

High Mast @ High Mast @

250 W HPSV 150 W HPSV 400 W HPMV CFL Fittings 16 Mtr (6 X 20 Mtr (12 X Million
Pa rticulars Unit Lamp Lamp Lamp (1x85W) 250W) 400W) Tota l Units
No. of streetlight fixtures 120 78 1929 2,127
Wattage of existing Street Lighting 250 0 400 85 0 0
Losses 25 0 40 0 0
Total Wattage of existing Street Lighting Watt 275 0 440 85 0 0
Wattage of LED Street Lighting Watt 120 75 200 40 720 2400
Hours of Usage Hrs/Day 11 11 11 11 11 11
Hours of Usage Hrs/Day 11 11 11 11 11 11
Operating days per year Days / Year 365 365 365 365 365 365
Existing Energy Consumption per year KW Hr 132,495 - 137,795 658,319 - - 928,609 0.93
New Energy Consumption per year KW Hr 57,816 - 62,634 309,797 - - 430,247 0.43
Energy saved per year KW Hr 74,679 - 75,161 348,522 - - 498,362 0
Energy Saved per year (Dimming) Kwhr - - - - - - -
Energy Saved per year Kwhr 74,679 - 75,161 348,522 - - 498,362 0.50

High Mast @ High Mast @

250 W HPSV 150 W HPSV 400 W HPMV CFL Fittings 16 Mtr (6 X 20 Mtr (12 X
Unit Lamp Lamp Lamp (1x85W) 250W) 400W) kW MW
Estimated Existing Load Requirement of Street Lighting kW 33.00 0.00 34.32 163.97 0.00 0.00 231.29 0.23
Estimated LED Load Requirement of Street Lighting kW 14.40 - 15.60 77.16 - - 107.16 0.11
124.13 0.12

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 Option-1
Annexure-2:
Financial Model Sheet (Annuity Based)

Financial Calculation for Replacement of Conventional Street Lighting with LED Street Lighting Systems in Bihar Sharif
Cost of LED (INR/Watt) 85
Cost per Driver (INR) -
Cost of CCMS (INR/Watt) 15
Total number of Street Lights to be replaced 2,127
Total LED Wattage for Replacement 107,160
Total Cost of LED with CCMS (INR) 10,716,000
Infrastructure Development Cost % (Arms and clamps whenever required) 10%
Infrastructure Development Cost (INR) 1,071,600
Project Management Consultancy % 3%
Project Management Consultancy (INR) 353,628
Total Capital cost of the Project (INR) 12,141,228
Project life 7
Financial Years 1 2 3 4 5 6 7 Total
Equity portion ( 20% of Capital Cost) 2,428,246
Debt portion ( 80% of Capital Cost) 9,712,982
Debt at the beginning of the Financial year 9,712,982 8,689,181 7,562,999 6,324,199 4,961,518 3,462,570 1,813,727
Debt at the End of the Financial year 8,689,181 7,562,999 6,324,199 4,961,518 3,462,570 1,813,727 -
Principal payout annually 1,023,802 1,126,182 1,238,800 1,362,680 1,498,948 1,648,843 1,813,727 9,712,982
Interest Rate/ Interest amount 10.00% 971,298 868,918 756,300 632,420 496,152 346,257 181,373 4,252,718
Annual maintenance charges 3.00% 364,237 364,237 364,237 364,237 364,237 364,237 364,237 2,549,658
Recovery of equity investment 699,861 699,861 699,861 699,861 699,861 699,861 699,861 4,899,026
Annual repayment to be made by MC to EESL ( Excluding Service-Taxes) 3,059,198 3,059,198 3,059,198 3,059,198 3,059,198 3,059,198 3,059,198 21,414,384
Service Tax @ 14% 15.00% 278,311 257,174 233,263 206,161 175,377 140,334 100,353 1,390,973
Annual repayment to be made by MC to EESL ( Including Service-Taxes) 3,337,509 3,316,372 3,292,461 3,265,359 3,234,575 3,199,531 3,159,551 22,805,358

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 Option-1
Annexure-3:
Financial Model Sheet (Upfront Based)

Financial Calculation for Replacement of Conventional Street Lighting with LED Street Lighting Systems in Bihar Sharif
Cost of LED (INR/Watt) 85
Cost per Driver (INR) -
Cost of CCMS (INR/Watt) 15
Total number of Street Lights to be replaced 2,127
Total LED Wattage for Replacement 107,160
Total Cost of LED with CCMS (INR) 10,716,000
Infrastructure Development Cost % (Poles, Switchgear, Cabling) 10%
Infrastructure Development Cost (INR) 1,071,600
Total Capital cost of the Project (INR) 11,787,600
Project life 7
Financial Years 1 2 3 4 5 6 7 Total

Total Capital cost of the Project (INR) 11,787,600 11,787,600

VAT 14.50% 1,709,202 1,709,202
Project Management Consultancy (INR) 3.00% 353,628 353,628
Service Tax on PMC @ 15% 15.00% 53,044 53,044
EESL Service Charges on Capital Cost & PMC 10.00% 1,214,123 1,214,123
Annual maintenance charges @ 3% of Capital cost and PMC with 6% escalation annually 3.00% 364,237 386,091 409,257 433,812 459,841 487,431 516,677 3,057,345
Service Tax on AMC @ 15% 15.00% 54,636 57,914 61,388 65,072 68,976 73,115 77,502 458,602
Annual repayment to be ma de by MC to EESL ( Including Se rvice -Ta xe s) 15,536,469 444,005 470,645 498,884 528,817 560,546 594,178 18,633,544

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 Option-1
Annexure-4:
Trade-Off of Energy Savings

Tra de -Off of Ene rgy Savings

Tra de -Off betw ee n Annual Pa yments to EESL a nd Sa vings in
1 Ele ctricity Bill 1 2 3 4 5 6 7 Tota l
Energy Savings per Annum 498,362 498,362 498,362 498,362 498,362 498,362 498,362 3,488,533
Energy Charges per Unit (INR) 3.00% - - - - - -
Fixed Charges (Rs./kW/Month) 3.00% 4,400.00 4,532.00 4,667.96 4,808.00 4,952.24 5,100.81 5,253.83
Benefit- Annual Savings in Electricity Consumption (INR Lacs) 65.54 67.50 69.53 71.62 73.76 75.98 78.26 502.18
Benefit- Annual Savings in Maintenance Cost (INR Lacs) 10.00% - - - - - - - -
Total savings on Electricity Bill & Maintenance Cost (INR Lacs) 65.54 67.50 69.53 71.62 73.76 75.98 78.26 502.18
Payout- Payme nt to EESL (INR Lacs) 33.38 33.42 33.44 33.45 33.45 33.41 33.35 233.89
2 Net Impa ct (INR La cs) 32.16 34.09 36.09 38.16 40.32 42.56 44.91 268.29

Tra de -Off betw ee n Ex isting Expe nditure a nd Re vise d Ex penditure on

3 Stree tlights 1 2 3 4 5 6 7 Tota l
Existing Energy Consumption per Annum (Units) 928,609 928,609 928,609 928,609 928,609 928,609 928,609 6,500,265
Revised Energy Consumption per Annum (Units) 430,247 430,247 430,247 430,247 430,247 430,247 430,247 3,011,732
Energy Charges per Unit (INR) 3.00% 7.00 7.21 7.43 7.65 7.88 8.11 8.36
Fixed Charges (Rs./kW/Month) 3.00% 4,400.00 4,532.00 4,667.96 4,808.00 4,952.24 5,100.81 5,253.83
Existing Expenditure on Electricity Consumption (INR Lacs) 122.12 125.78 129.56 133.44 137.45 141.57 145.82 935.73
Existing Expenditure on Maintenance (INR Lacs) 10.00% - - - - - - - -
Tota l Ex isting Ex pe nditure on Stre etlights (INR La cs) 122.12 125.78 129.56 133.44 137.45 141.57 145.82 935.73
Revised Expenditure on Electricity Consumption per Annum (INR Lacs) 56.58 58.28 60.03 61.83 63.68 65.59 67.56 433.55
Fixed Charges (Rs./kW/Month) 3% 4,400.00 4,532.00 4,667.96 4,808.00 4,952.24 5,100.81 5,253.83
Payout-Payment to EESL (INR Crores) 33.38 33.42 33.44 33.45 33.45 33.41 33.35 233.89
UnMe te red Tota l Re vised Ex pe nditure on Stre etlights (INR La cs) 89.96 91.69 93.47 95.28 97.13 99.00 100.91 667.44
Net Impa ct (Unme tere d to Unme tere d billing) (INR La cs) 32.16 34.09 36.09 38.16 40.32 42.56 44.91 268.29
Revised Expenditure on Electricity Consumption per Annum (INR Lacs) 30.12 0.75 0.77 0.80 0.82 0.84 0.87 34.96
Energy Charges per Unit (INR) 3% 7.00 58.28 60.03 61.83 63.68 65.59 67.56
Payout-Payment to EESL (INR Crores) 33.38 33.42 33.44 33.45 33.45 33.41 33.35 233.89
Mete re d Tota l Re vised Ex pe nditure on Stre etlights (INR La cs) 63.49 34.16 34.21 34.25 34.26 34.26 34.22 268.86
Net Impa ct (Unme tere d to Me tered billing) (INR La cs) 58.63 91.62 95.34 99.19 103.18 107.31 111.60 666.87

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 Option-2
Annexure-1:
Energy Saving Basis

Basis of Energy Saving Calculations:

Replacement of Conventional Street Lighting with LED Street Lighting Systems in Bihar Sharif

High Mast @ High Mast @

250 W HPSV 150 W HPSV 400 W HPMV CFL Fittings 16 Mtr (6 X 20 Mtr (12 X Million
Particulars Unit Lamp Lamp Lamp (1x85W) 250W) 400W) Total Units
No. of streetlight fixtures 120 3130 78 1929 5,257
Wattage of existing Street Lighting 250 150 400 85 0 0
Losses 25 15 40 0 0
Total Wattage of existing Street Lighting Watt 275 165 440 85 0 0 583770.164
Wattage of LED Street Lighting Watt 120 70 190 35 720 2400
Hours of Usage Hrs/Day 11 11 11 11 11 11
Hours of Usage Hrs/Day 11 11 11 11 11 11
Operating days per year Days / Year 365 365 365 365 365 365
Existing Energy Consumption per year KWHr 1,32,495 20,73,547 1,37,795 6,58,319 - - 30,02,156 3.002
New Energy Consumption per year KWHr 57,816 8,79,687 59,502 2,71,073 - - 12,68,078 1.27
Energy saved per year KWHr 74,679 11,93,860 78,293 3,87,247 - - 17,34,079 58%
Energy Saved per year (Dimming) Kwhr - - - - - - -
Energy Saved per year Kwhr 74,679 11,93,860 78,293 3,87,247 - - 17,34,079 1.73

High Mast @ High Mast @

250 W HPSV 150 W HPSV 400 W HPMV CFL Fittings 16 Mtr (6 X 20 Mtr (12 X
Unit Lamp Lamp Lamp (1x85W) 250W) 400W) kW MW
Estimated Existing Load Requirement of Street Lighting kW 33.00 516.45 34.32 163.97 0.00 0.00 747.74 0.75
Estimated LED Load Requirement of Street Lighting kW 14.40 219.10 14.82 67.52 - - 315.84 0.32
431.90 0.43
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 Option-2
Annexure-2:
Financial Model Sheet (Annuity Based)

Financial Calculation for Replacement

1 Cost of LED (INR/Watt) 85
2 Cost per Driver (INR) -
3 Cost of CCMS (INR/Watt) 15
4 Total number of Street Lights to be replaced 5,257
5 Total LED Wattage for Replacement 3,15,835
6 Total Cost of LED with CCMS (INR) 315,83,500
7 Infrastructure Development Cost % (Arms & Clamps wherever required) 10%
8 Infrastructure Development Cost (INR) 31,58,350
9 Project Management Consultancy % 3%
10 Project Management Consultancy (INR) 10,42,256
11 Total Capital cost of the Project (INR) 357,84,106
12 Project life 7
13 Financial Years 1 2 3 4 5 6 7 Total
15 Equity portion ( 20% of Capital Cost) 71,56,821
16 Debt portion ( 80% of Capital Cost) 286,27,284
17 Debt at the beginning of the Financial year 286,27,284 254,18,956 219,53,961 182,11,767 141,70,197 98,05,301 50,91,214
18 Debt at the End of the Financial year 254,18,956 219,53,961 182,11,767 141,70,197 98,05,301 50,91,214 (0)
19 Principal payout annually 32,08,329 34,64,995 37,42,194 40,41,570 43,64,896 47,14,087 50,91,214 286,27,284
20 Interest Rate/ Interest amount 8.00% 22,90,183 20,33,516 17,56,317 14,56,941 11,33,616 7,84,424 4,07,297 98,62,294
21 Annual maintenance charges 3.00% 10,73,523 10,73,523 10,73,523 10,73,523 10,73,523 10,73,523 10,73,523 75,14,662
22 Recovery of equity investment 20,62,715 20,62,715 20,62,715 20,62,715 20,62,715 20,62,715 20,62,715 144,39,007
23 Annual repayment to be made by MC to EESL ( Excluding Service-Taxes) 86,34,750 86,34,750 86,34,750 86,34,750 86,34,750 86,34,750 86,34,750 604,43,248
24 Service Tax @ 15% 15.00% 7,34,390 6,78,854 6,16,591 5,46,573 4,67,586 3,78,193 2,76,684 36,98,871
25 Annual repayment to be made by MC to EESL ( Including Service-Taxes) 93,69,140 93,13,604 92,51,341 91,81,323 91,02,336 90,12,942 89,11,434 641,42,119

Debt (Pre-Tax) 80.00% 8.00%

Equity (Pre-Tax) 20.00% 21.41%
Cost of Capital 100.00% 10.68%

Equity (Post-Tax) 14.00%

Income Tax Rate 30.00%

Surcharge 12.00%
Education Cess 3.00%
Tax Rate 34.61%

26 Equity Investment
27 Opening Balance 71,56,821 71,56,821 66,26,334 59,82,274 52,00,325 42,50,965 30,98,354 16,98,976
28 Recovery of Equity 7.00 5,30,487 6,44,060 7,81,949 9,49,360 11,52,611 13,99,378 16,98,976 71,56,821
29 Closing Balance 66,26,334 59,82,274 52,00,325 42,50,965 30,98,354 16,98,976 0
30 Return on Equity 21.41% 15,32,229 14,18,655 12,80,766 11,13,356 9,10,104 6,63,337 3,63,740 72,82,186

31 Recovery of Equity (71,56,821) 20,62,715 20,62,715 20,62,715 20,62,715 20,62,715 20,62,715 20,62,715 144,39,007
32 Equity IRR 21.41%

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 Option-2
Annexure-3:
Financial Model Sheet (Upfront Based)

Financial Calculation for Replacement of Conventional Street Lighting with LED Street Lighting Systems in Bihar Sharif
1 Cost of LED (INR/Watt) 85
2 Cost per Driver (INR) -
3 Cost of CCMS (INR/Watt) 15
4 Total number of Street Lights to be replaced 5,257
5 Total LED Wattage for Replacement 3,15,835
6 Total Cost of LED with CCMS (INR) 315,83,500
7 Infrastructure Development Cost % (Poles, Switchgear, Cabling) 10%
8 Infrastructure Development Cost (INR) 31,58,350
9 Total Capital cost of the Project (INR) 347,41,850
10 Project life 7
11 Financial Years 1 2 3 4 5 6 7 Total
12
13
14 Total Capital cost of the Project (INR) 347,41,850 347,41,850
15 VAT 14.50% 50,37,568 50,37,568
16 Project Management Consultancy (INR) 3.00% 10,42,256 10,42,256
17 Service Tax on PMC @ 15% 15.00% 1,56,338 1,56,338
18 EESL Service Charges on Capital Cost & PMC 10.00% 35,78,411 35,78,411
19 Annual maintenance charges @ 3% of Capital cost and PMC with escalation annually 3.00% 10,73,523 10,73,523 11,37,935 12,06,211 12,78,583 13,55,298 14,36,616 85,61,689
20 Service Tax on AMC @ 15% 15.00% 1,61,028 1,61,028 1,70,690 1,80,932 1,91,787 2,03,295 2,15,492 12,84,253
21 Annual repayment to be made by MC to EESL ( Including Service-Taxes) 457,90,974 12,34,552 13,08,625 13,87,142 14,70,371 15,58,593 16,52,109 544,02,365

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 Option-2
Annexure-4:
Trade-Off of Energy Savings

Trade-Off of Energy Savings

Trade-Off between Annual Payments to EESL and Savings in Electricity
Bill 1 2 3 4 5 6 7 Total
Energy Savings per Annum 17,34,079 17,34,079 17,34,079 17,34,079 17,34,079 17,34,079 17,34,079 121,38,550
Energy Charges per Unit (INR) 3.00% - - - - - -
Fixed Charges (Rs./kW/Month) 3.00% 4,500.00 4,635.00 4,774.05 4,917.27 5,064.79 5,216.73 5,373.24
Benefit- Annual Savings in Electricity Consumption (INR Lacs) 233.23 240.22 247.43 254.85 262.50 270.37 278.48 1,787.09
Benefit- Annual Savings in Maintenance Cost (INR Lacs) 10.00% - - - - - - - -
Total savings on Electricity Bill & Maintenance Cost (INR Lacs) 233.23 240.22 247.43 254.85 262.50 270.37 278.48 1,787.09
Payout- Payment to EESL (INR Lacs) 93.69 93.14 92.51 91.81 91.02 90.13 89.11 641.42
Net Impact (INR Lacs) 139.53 147.09 154.92 163.04 171.47 180.24 189.37 1,145.66
45.84
Trade-Off between Existing Expenditure and Revised Expenditure on
Streetlights 1 2 3 4 5 6 7 Total
Existing Energy Consumption per Annum (Units) 30,02,156 30,02,156 30,02,156 30,02,156 30,02,156 30,02,156 30,02,156 210,15,092
Revised Energy Consumption per Annum (Units) 12,68,078 12,68,078 12,68,078 12,68,078 12,68,078 12,68,078 12,68,078 88,76,543
Energy Charges per Unit (INR) 3.00% 7.00 7.21 7.43 7.65 7.88 8.11 8.36
Fixed Charges (Rs./kW/Month) 3.00% 4,500.00 4,635.00 4,774.05 4,917.27 5,064.79 5,216.73 5,373.24
Existing Expenditure on Electricity Consumption (INR Lacs) 403.78 415.89 428.37 441.22 454.45 468.09 482.13 3,093.93
Existing Expenditure on Maintenance (INR Lacs) 10.00% - - - - - - - -
Total Existing Expenditure on Streetlights (INR Lacs) 403.78 415.89 428.37 441.22 454.45 468.09 482.13 3,093.93
Revised Expenditure on Electricity Consumption per Annum (INR Lacs) 170.55 175.67 180.94 186.37 191.96 197.72 203.65 1,306.84
Fixed Charges (Rs./kW/Month) 3% 4,500.00 4,635.00 4,774.05 4,917.27 5,064.79 5,216.73 5,373.24
Payout-Payment to EESL (INR Crores) 93.69 93.14 92.51 91.81 91.02 90.13 89.11 641.42
Total Revised Existing Expenditure on Streetlights (INR Lacs) 264.24 268.80 273.45 278.18 282.98 287.84 292.76 1,948.26
Total Revised Expenditure on Streetlights (INR Lacs) 139.53 147.09 154.92 163.04 171.47 180.24 189.37 1145.66
Revised Expenditure on Electricity Consumption per Annum (INR Lacs) 88.77 6.66 6.86 7.06 7.28 7.49 7.72 131.83
Energy Charges per Unit (INR) 3% 7.00 175.67 180.94 186.37 191.96 197.72 203.65
Payout-Payment to EESL (INR Crores) 93.69 93.14 92.51 91.81 91.02 90.13 89.11 641.42
Total Revised Existing Expenditure on Streetlights (INR Lacs) 182.46 99.79 99.37 98.88 98.30 97.62 96.83 773.25
Total Revised Expenditure on Streetlights (INR Lacs) 221.32 316.10 329.00 342.34 356.16 370.47 385.30 2320.67

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