INVESTMENT OPPORTUNITY INDIA:

ENERGY EFFICIENT LED STREELIGHTING FOR SMART CITY BIDHANNAGAR

Project
Project
Project
Project

Location:
Scope:
Client:
Developer:

Bidhannagar, a suburb of Kolkata in West Bengal, India

Retrofitting of 21100 Streetlights with LED Luminaires
A large state-owned electronics conglomerate (General Contractor)
Swiss Developer

Project Investment: 5.2 MUSD

Equity Required:
1.6 MUSD / 30%
CH)
Break-Even Period:
3.3 Years
Return on Investment: > 25%
Project Significance:
current

(Debt financing possible from banks in IND and/or

(Repayment in 60 EMIs over 5 years)

Retrofitting streetlights with LED luminaires is a vital component of the

trend towards Smart Cities in India. The ESCO model is the preferred

financing

mode for such ventures. There are several follow-up projects in other cities.

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LOCATION, POPULATION AND ECONOMY OF BIDHANNAGAR

Bidhannager, or Salt Lake City as it is popularly
called, is a planned satellite town in the Indian
state of West Bengal. It was developed between
1958 and 1965 to accommodate the burgeoning
population of Kolkata.
It is now a hub of economic and social expansion
and is famous as the centre for IT in the city.

Bidhannagar

The population is 218000 (2011) and the

population density is close to 16000 persons per
km2.
Additionally, the IT and ITES industries employ
120000 persons. There are also several
educational institutions in this suburb of Kolkata.

PROJECT
EFFICIENCY

DRIVER

IS

ENERGY

Bidhannagar, as a Smart City candidate has a full-fledged plan to improve the infrastructure and
civic amenities for its citizens. The installation of modern LED streetlights not only improves the
quality of the lighting and nocturnal security, but brings savings due to lower energy consumption.
The first phase of the transition to LED Streetlighting involves 21100 lamps with an aggregate
power comsumption of 1461000 Watt. This represents, with dimming profiles, a saving of 62%
compared to the current power consumption of 3098000 Watt based on conventional HPSV and
MH lamps.
The annual saving of energy costs and operations and maintenance cost is USD 1.6 million. The
required investment of USD 5.2 million is hence amortised in 3.3 years.

ESCO PROJECT FORMAT AND EXECUTION

The state of West Bengal, India, wishes to execute this project through the ESCO (Energy Service
Company) model. The cost of a) product and technology sourcing, b) installation, testing and
commissioning, and c) operations and maintenance over a five-year period will be compensated
over a five-year period through 60 equal monthly instalments. The LED Streetlighting
infrastructure is handed over to the Bidhannagar Municipal Corporation at the end of the five-year
period.
The client is a large electronics conglomerate. Negotiations and contract finalisation with
European investors and technology providers is directly coordinated with the Chief Ministers
Office.

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The technology sourcing and system design/integration is assured by a Swiss Developer.

Installation, testing and commissioning as well as the five-year operations and maintenance is
provided by Indian associates of swissmango GmbH in Kolkata.

TECHNOLOGY SOURCING FROM WORLD-CLASS SUPPLIERS

The LED Streetlights are manufactured on an
OEM basis by CEM DAG, a leader in LED
Streetlighting
R&D,
technology
and
manufacturing in Izmir, Turkey. The products
have a dual branding SwissLED and CEM. CEM
DAG boasts 48 years of expertise and product
leadership in Streetlights.

USD

Watt

A benchmarking of Indian, Chinese, European

and SwissLED-CEM products over multiple
power ranges indicates that SwissLED-CEM demonstrates the best performance-to-price ratio.
SwissLED-CEM products come with a five-year product warranty.
The LED chips are procured from leading international vendors Nichia (Japan), CREE (US) or
Samsung (S Korean). The LED driver electronics as well as the Lighting Management System
(Control Automation) are procured either from Tridonic (Austrian/Swiss) or from Vossloh-Schwabe
(German). The aluminium die-cast housing provides best-in-class thermal, ingress and mech. shock
protection.

FIVE-YEAR TIME-LINE
Phase 1 of the project, with a scope of 21100 LED Streetlights for Bidhannagar is ready to
commence immediately:
1. Discussions with Indian Partner, The General Contractor and Govt. of West Bengal
on-going
2. Contract finalisation and closure with client:
7 November 2016
3. Design Validation, Procurement, Installation, Testing, Commissioning:
Nov 2016 to
March 2017
4. Operations & Maintenance:
April 2017 to March
2022
5. Hand-over of the LED Streetlight infrastructure to Client:
March 2022
Phase 2 of the project, with a scope of 40000 LED Streetlights for Rajarhat/New Town and North
Bengal will run from January 2017 until September 2022.

BETTER THAN 25% RETURN ON INVESTMENT

The investment required for phase 1 (21100 LED Streetlights) is USD 5.2 million and the
investment required for phase 2 (40000 LED Streetlights) is USD 10 million.
In each phase, the repayment will be over 60 equal monthly instalments over a five-year period.

The investment term can be prolonged beyond the five-year term by following the initial project
with a follow-up projects.

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The return on investment is better than 25% based on 30% equity and 70% debt financing.

INVESTMENT MODALITIES
100% of the project equity investment may be pooled from multiple investors in Europe. Debt
financing is available from banks in India and in Switzerland to provide leveraging
The deal will be structured for optimum taxation.
100% FDI and repatriation of funds is allowed in India.

REFERENCES
1. Bidhannagar Accelerates Its Demand For Inclusion In Smart City Mission
http://www.pocketnewsalert.com/2016/05/Bidhannagar-Accelerates-Its-Demand-For-Inclusion-In-Smart-City-Mission.html

2. Bidhannagar Municipal Corporation Smart City Proposal

http://www.smartcitieschallenge.in/files/dmfile/Draft-Smart-Cities-Proposal-bidhannagar1.pdf
3. Bidhannagar Smart City Proposal Round - 2
https://www.mygov.in/group-issue/bidhannagar-smart-city-proposal-round-2/

4. The technical specification for the project is available on request.

Panoramic view of the Down Town Sector V, one of the major IT hubs of Kolkata, as seen from the lakes surrounding Bidhannagar.

For more information : Please contact :

Sabine Christiaens
VERD Q.I.
Skype : schristiaens
Christiaens.sabine@gmail.com
Whatsapp : +34 627 401917

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