Bhubaneswar: The Housing and Urban Development (H&UD) Department has asked Energy Efficiency Services Limited (EESL) to reimburse Rs 39.59 crore towards the replacement cost of defective LED street lights and CCMS units installed across Urban Local Bodies (ULBs) in Odisha.

The department alleged that EESL failed to replace defective lights and equipment despite repeated notices. A field survey jointly conducted by the ULB officials and independent engineers reportedly found 45,489 LED lights and 2,509 CCMS units defective, said the department.

According to the department, the state government had terminated the contract with the EESL for the LED public street lighting project in June 2023: However, the state government has reserved its right to claim warranty costs for defective items covered under the seven-year warranty period.