In a first-of-its-kind initiative, the Delhi government has announced an EMI-based payment model for a large-scale streetlight modernisation project aimed at upgrading nearly 93,000 streetlights across the national capital. The project, estimated at Rs 473.24 crore, seeks to replace conventional High Pressure Sodium Vapour (HPSV) lights and ageing LED fixtures with smart LED lighting systems.

Public Works Department (PWD) Minister Parvesh Sahib Singh said the initiative is expected to significantly reduce electricity consumption and generate savings of around Rs 300 crore over the next five years. The upgraded lighting network will cover roads maintained by the PWD across Delhi.

Delhi Introduces EMI-Based Payment Model

Announcing the project on Tuesday, Singh said the government would adopt a monthly EMI-based payment mechanism for the contractor, with disbursements linked to the performance of the streetlights.

According to the minister, the model has been introduced to ensure proper functioning and effective management of the new smart lighting infrastructure. Payments will depend on regular performance reports and uninterrupted operation of the streetlights.

Singh said the initiative marks the first time such a payment mechanism is being implemented for a government infrastructure project in the national capital.

Project to Cover 1,400 Kilometres of Roads

The modernisation programme will be executed in phases across the PWD’s road network, which stretches over approximately 1,400 kilometres in Delhi.

Apart from replacing existing fixtures, the government also plans to install around 5,000 new poles to illuminate currently dark stretches and address future requirements.

The expanded network is expected to improve visibility and enhance road safety across key stretches maintained by the department.

Smart Lighting System to Offer Real-Time Control

A major component of the project is the establishment of a centralised command-and-control centre at the PWD headquarters. The facility will be equipped with two 75-inch display systems and specialised software for real-time monitoring of the entire lighting network.

The smart LED lights will be individually controllable and dimmable, allowing authorities to adjust illumination levels according to weather conditions and operational needs.

The technology-driven approach is expected to improve efficiency and provide greater control over maintenance and energy consumption.

Performance-Based Framework to Ensure Accountability

Under the performance-linked payment mechanism, the contractor will be required to maintain uninterrupted functioning of the lighting infrastructure to receive monthly payments.

The government believes that linking payments to performance will enhance accountability and ensure prompt maintenance of the network.

The tender for the project has already been floated and the contract is expected to be awarded within the next two weeks.

Smart LEDs Expected to Deliver Major Savings

Observations from the Finance Department indicate that replacing the existing system with smart LED lighting will significantly reduce power expenditure over the next five years.

The government estimates savings of nearly Rs 300 crore during the period, highlighting the long-term financial benefits of the project alongside improved energy efficiency.

The transition to smart lighting is also expected to contribute to lower electricity consumption and reduced operational costs.

Part of Broader Urban Infrastructure Push

The streetlight modernisation drive forms part of the Delhi government’s wider efforts to upgrade urban infrastructure through technology-driven solutions.

Authorities aim to improve public services while ensuring better resource utilisation and cost efficiency across various sectors.

With the introduction of smart lighting and a performance-based payment system, the government is seeking to create a more sustainable and responsive urban infrastructure framework for the capital.

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