EESL Signs MoU with Income Tax Department to retrofit Energy Efficient appliances.

In a major initiative taken by the Central Board of Direct Taxes, Ministry of Finance, Government of India, theIncome Tax Office (Aaykar Bhawan), Guwahati signed an Agreement today with Energy Efficiency Services Limited (EESL) to retrofit existing inefficient lighting, fans and air conditioners with energy efficient appliances. This MoU was signed under the Buildings Energy Efficiency Programme (BEEP) that is being implemented by EESL, under the administration of Ministry of Power, Government of India.

The MoU was signed between Shri Vikram Sahay, Commissioner of Income Tax (Administration & TPS), North Eastern Region, Guwahati on behalf of Principal Chief Commissioner of Income Tax, NER and Shri Saurabh Kumar, Managing Director, EESL. This is the first such project in the Income Tax Department.

Under the MoU, EESL will retrofit energy efficient appliances in the building under the Energy Service Company (ESCO) model, wherein the upfront capital cost shall be borne by EESL and the resultant savings from projects will be used to repay for EESL investments on deemed basis.

EESL will invest Rs 1.21 crore in the project, and Aaykar Bhawanshall save over Rs 35 lakh annually on electricity bills through these interventions. It will also lead to an energy savings of 3.9 lakh kWh annually through the retrofitting drive. The payback period for the project is 3.5 years, i.e., Aaykar Bhawan shall repay the amount of Rs 1.21 crore to EESL out of the savings accrued, within this period. This agreement is expected to be followed by similar collaboration for over 330 odd office buildings of the Income Tax Department across the country.

In August this year, the Department of Expenditure under Union Ministry of Finance issued a directive to take up services of EESL to assist various ministries and departments to retrofit energy efficient appliances in all their premises across the country. These retrofitting drives shall take place under the Buildings Energy Efficiency Programme. Under the programme, EESL intends to bring in investment of around Rs 1,000 crore covering more than 10,000 large government/private buildings by 2020. It is estimated that about one crore LED lights, 15 lakh energy efficient ceiling fans, and 1.5 lakh energy efficient ACs will be retrofitted by EESL in these buildings. Apart from retrofitting, EESL also aims to widen its services in areas like centralized AC system, Energy Audits, and New Generation Energy Management System in buildings.

At present, the savings through 28 completed building projects across seven states are estimated to be over 11.03 MU, which is bound to increase with each completed project.

The Hon'ble Prime Minister, Shri Narendra Modi on 5th January, 2015 had launched the National LED Programme, to facilitate rapid adoption of LED based home and street lighting across the country. The programme components, Unnat Jyoti by Affordable LEDs for All (UJALA) and Street Lighting National Programme (SLNP) of EESL are currently under implementation in 29 States and 7 Union Territories. 

Business | News published on 23/10/2017 by Rashmi Nargundkar

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