Funding ratio revised to 70:30 (Govt:Panchayat) to ease burden on village bodies, says New & Renewable Energy Minister
CHANDIGARH: Punjab is set to illuminate every village with 3 lakh new LED-based solar streetlights at a cost of Rs 470 crore, announced Mr. Aman Arora, Minister for New and Renewable Energy Sources, Punjab. In a major rural infrastructure push covering all 23 districts, the state government is equipping gram panchayats with clean energy lighting to enhance safety, connectivity and sustainability in rural areas.
Addressing a press conference after handing over work orders to the selected seven agencies here at Punjab Bhawan, Mr. Aman Arora said that Chief Minister Bhagwant Mann led state government will contribute 70% of the project cost, while gram panchayats will bear the remaining 30%. This is a big shift from the earlier 30:70 ratio that put an excessive financial burden on village bodies. The decision was taken considering the limited financial resources at the panchayat level and to ensure equal opportunity for all panchayats to participate in the programme.
Mr. Aman Arora said the initiative reflects CM Mann led Punjab government’s intent to enhance safety, improve rural infrastructure and promote clean energy in gram panchayats. With 62.51% of Punjab’s population, around 173.20 lakh people are residing in rural areas. Dark streets raise risks of accidents and crime while limiting post-sunset economic and social activity, with women, children and the elderly bearing the brunt. The project will also help villages near major economic hubs extend working hours, giving a boost to the state’s rural economy.
The Punjab Energy Development Agency (PEDA) will serve as the nodal agency for implementation. It will oversee the installation of new solar streetlights as well as the comprehensive repair and renewal of existing systems. Based on feedback from panchayats, the maintenance support period has been extended from five years to seven years to ensure long-term functionality, he added.
Outlining the governance framework, Mr. Aman Arora said the programme incorporates several transparency and accountability measures including geo-tagging and unique identification of each streetlight, QR code and IVRS-based grievance redressal, and remote monitoring systems to track functionality. The system will also trigger automated Annual Maintenance Contract (AMC) alerts to ensure repairs are carried out within 72 hours of any malfunction.
Mr. Aman Arora said that site selection will prioritise public spaces- village phirni, schools, Anganwadi centres, government health facilities, religious institutions- and densely populated areas. This approach underlines Punjab Government’s commitment to inclusive rural development, besides ensuring that lighting benefits reach the most vulnerable sections first, he added.
Mr. Arora said the programme will be implemented on an opt-in basis, giving gram panchayats the freedom to join as per local needs. Panchayats can also determine the number of lights, including options with and without poles, to manage costs effectively. To ensure timely execution, 50% of the work must be completed within 120 days and the balance within 180 days from the date of the work order, he added.
“This initiative will light up thousands of villages across Punjab while keeping cost, quality and accountability at its core. The revised 70:30 funding pattern will significantly ease the burden on our gram panchayats. The rates discovered through the transparent process ensure that public money is used efficiently. With mandatory geo-tagging, remote monitoring and a strengthened grievance redressal system, every single light installed will be traceable and accountable,” he stated.
