Breaking News

Govt has succeeded in saving Rs 86 cr by short closing ‘contract’: Cabral



Power Minister Nilesh Cabral, on Thursday, said that Goa government has succeeded in saving Rs 86 crore by short closing the contract signed with the Energy Efficiency Services Ltd (EESL), a government of India undertaking, for 10 years for installing and maintaining of LED streetlights in the state.

With this decision, henceforth the power department will carry out maintenance work of LED streetlights, and EESL and its subordinate firms will continue to supply required lights, switch boxes and panels.

Speaking to this daily, on Thursday, Cabral said that it has been amicably agreed by the government and EESL to short close 95 per cent of contract signed two years back, which will save Rs 86 crore for the state.

The Minister said that the contract signed with EESL for 10 years was of Rs 263 crore, of which the government has already paid Rs 25 crore to the firm.

“Now, all parties have agreed to short close the contract. The total amount that needs to be paid by the government to the EESL with interest is Rs 177 crore, out of which Rs 25 crore has been already paid. With this negotiation, the state will save its Rs 86 crore from this contract signed for installing and maintaining LED street lights,” he added.

Cabral said that the EESL will depute its two officials to train the staff of power department for maintaining LED streetlights for next eight years.

“Now, I will put this decision before the Chief Minister Pramod Sawant, and later it will go to the cabinet for approval,” he added.

The Minister said, “Henceforth the maintenance of LED streetlights would be done by the power department, the issues that were there would be resolved probably in next three months.”

Check Also

Oppn demands white paper for arresting COVID spread

Panaji: Demanding a white paper from the government on state machinery’s preparedness to tackle any …