EESL in talks for $100mn ADB fund to boost energy conservation

Power PSUs' promoted Energy Efficiency Services Limited (EESL) is negotiating with the Asian Development Bank for a $100 million long-term loan to boost implementation of energy conservation projects.

"We are in early stage of talks with ADB for a line of credit of $100 million. We received development funds for clean and conservation of energy from other development agencies like KfW of Germany and AfD (French Agency for Development)," EESL Managing Director Saurabh Kumar told PTI.

KfW had given 50 million euros and an agreement has been signed for another 50 million for AfD.

EESL, which facilitates implementation of energy efficiency projects, has projects worth Rs 1,000 crore to be rolled out over the next two to three years.

Kumar said though the agency is against domestic funds, there are issues like banks not being very keen, loans of shorter duration and cheaper by at least 250 basis points over credit from multilateral agencies.

"Fund will not be a problem. Promoters will increase the paid up capital which is now Rs 180 crore as and when needed," he said.

EESL is also in the process to execute a Rs 300-crore street light project covering three lakh light posts in Kolkata that will offer a saving of at least Rs 50-60 crore annually in the energy bill.

The agency is also offering LED lamps worth Rs 300 a piece for the price of an incandescent lamp costing Rs 10 each.

"In this project state government will pay back the cost over next eight to 10 years from savings it will achieve," Kumar said.