Alappuzha: Nilaavu project, aimed at converting traditional streetlights to LED bulbs in Kerala, has failed, resulting in a loss of ₹243 crore to the state government. 

According to government plans, the 'Nilaavu' project aimed to replace 10.5 lakh old street bulbs, but only 360,976 were replaced. Despite spending 84% of the allocated funds, the project fell far short of its target.

The Kerala State Government, through the Kerala Infrastructure Investment Fund Board (KIIFB), advanced ₹289.82 crore for the project. Of this, 84% (₹243 crore) was provided in advance to Energy Efficiency Services Limited (EESL), the central agency responsible for executing the project. However, the project was not completed as planned.

Based on a survey by the Kerala State Electricity Board (KSEB), the plan was to install LED bulbs on 10.5 lakh electricity poles out of the 16.24 lakh poles across the state. The project was inaugurated by the Chief Minister on February 22, 2021, with a completion deadline set for two months.

The project was undertaken as a tripartite agreement between EESL, KSEB, and local bodies, with KSEB responsible for the maintenance of the LED bulbs. Local bodies were tasked with informing KSEB when lights were damaged.

Around 500,000 LED bulbs were initially delivered for the project. However, only 360,976 bulbs were replaced, and 73,922 of those were found to be defective. Despite repeated notifications, only 13,694 bulbs were repaired by KSEB.

The local body authorities have stated that the failure of the project is due to the lapses by both KSEB and EESL.