Tata Projects issues notice to Ludhiana civic body for payment delay

01 Sep 2021 CW Team

Tata Projects announced it issued a circular to the Ludhiana Municipal Corporation for delay in payment, arbitration, and interest penalties.

The firm informed that it installed over 1 lakh lights under the Ludhiana LED street lighting project. However, since October 2020 (after installation), the monthly payment of Zone A and Zone C is due.

Moreover, for the last six months, the payment for Zone B and D are also unpaid.

According to the media reports, this resulted in over Rs 9 crore payment being overdue.

Tata project revealed that the project reached Rs 1.65 crore monthly savings for the city and its citizens. As per the estimation, there is a 64% decrease in earlier monthly electricity bills for Rs 2.53 crore from earlier usage of conventional street lights.

Shyam Sunder Malhotra, senior deputy mayor, told the media that in a meeting last week, they raised this issue, and during the conference, they assured them that the MC is willing to pay the dues. However, first, they need to improve things.

Rajendra Inani, BU head, Smart Cities, Tata Projects, informed that officials ignored the requests regarding the dues made by them.

Inani said he informed the mayor that the authorities would have to shut the project or clear the dues. The firm has already taken the issue to the state authorities seeking their immediate intervention.

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