Odisha Cabinet Approves ₹200 Crore Allocation for LED Street Lighting in 110 Urban Local Bodies
Funding from OUIDF resources to complete retrofitting works, improve energy efficiency, and enhance public safety
Bhubaneswar: The Odisha Cabinet on Wednesday approved a proposal from the Housing and Urban Development (H\&UD) Department to allocate up to ₹200 crore from the Odisha Urban Infrastructure Development Fund’s (OUIDF) own resources—drawn from recovery of principal and interest—for the ongoing LED Public Street Lighting Project in 110 Urban Local Bodies (ULBs) across the state under retrofitting stretches.
The initiative aims to modernise existing public lighting systems by replacing outdated fixtures with smart, energy-efficient LED luminaires and ensuring their long-term operation and maintenance. It forms part of the state’s broader programme to upgrade street lighting infrastructure in both newly developed (greenfield) stretches and existing (retrofitting) stretches to improve illumination, enhance public safety, and reduce energy costs.
In recent years, the expansion of ULB jurisdictions, coupled with rising public demand, has led to a significant need for additional and upgraded street lighting infrastructure. Municipalities and Notified Area Councils (NACs) have been receiving requests for new installations in unlit areas and for upgrades in older networks where fixtures and components have become defective or outdated.
The LED Public Street Lighting Project, which covers all 110 ULBs in the state, was first approved by the Cabinet in its 69th meeting on December 30, 2023. At that stage, greenfield works were funded through a combination of OUIDF loans, grants, and ULB contributions. Retrofitting works, meanwhile, were planned following detailed joint surveys conducted by implementing agencies, ULBs, and independent engineers to identify areas where equipment required replacement.
Based on these surveys, six implementing agencies were engaged to execute the retrofitting works. The total cost of the retrofitting component was estimated at ₹350.04 crore, with ₹150 crore already allocated from OUIDF resources. The newly approved ₹200 crore will bridge the funding gap, ensuring the completion of all planned retrofitting activities.
Officials noted that the project will deliver multiple benefits to urban residents, including improved lighting coverage, better visibility on roads, enhanced public safety during night hours, and increased security in residential and commercial areas. Additionally, the shift to LED technology is expected to result in substantial energy savings and reduced maintenance expenses for ULBs over the long term.
“The adoption of LED luminaires not only improves the quality of street lighting but also aligns with the state’s commitment to sustainable urban infrastructure,” an H\&UD Department official said. “By replacing outdated fixtures with smart, energy-efficient alternatives, we can reduce energy consumption and operational costs while providing better services to the public.”
Under the project, retrofitting works will involve the installation of LED streetlights equipped with smart control systems, allowing for better monitoring, remote operation, and fault detection. This technology will enable ULBs to quickly respond to outages or technical issues, further improving service reliability.
Officials added that the use of OUIDF’s own recovered resources for this allocation reflects the fund’s sustainability model, whereby repayments from earlier loans are reinvested into new infrastructure projects. The LED Street Lighting Project is one of the flagship urban infrastructure initiatives supported by OUIDF, which continues to play a key role in financing improvements in Odisha’s municipal services.
Work on the retrofitting stretches is already underway in several ULBs, and with the fresh funding, the state government expects the project to be completed within the targeted timelines. Once fully implemented, the initiative is expected to provide uniform, high-quality street lighting across Odisha’s urban areas, benefiting lakhs of residents and strengthening the state’s push towards modern, energy-efficient urban infrastructure.
