GS Scam Expose: Ahmedabad Streetlight Tender Cost Soars From ₹190.70 Crore to ₹398.41 Crore

The Ahmedabad Municipal Corporation’s (AMC) struggle to secure a permanent agency for citywide street light operation and maintenance has pushed the estimated project cost from ₹190.70 crore to ₹398.41 crore as civic officials prepare for a sixth tender attempt. The administrative deadlock, triggered by technical disqualification controversies and restrictive bidding conditions, has left major arterials and internal roads in darkness, resulting in 1,21,067 citizen complaints registered up to October 15, 2026.

The civic body's street light management crisis began in January 2025 when previous contractor Citalum Company declined to extend its contract upon expiration. Since then, the AMC has relied on temporary arrangements through sub-contractors while failing five consecutive times to finalize a long-term contract.

Disqualification Feuds and Technical Tug-of-War

The initial three tender attempts carried an estimated cost of ₹190.70 crore but collapsed due to eligibility disputes between bidding firms:

• First Attempt: Rejected after receiving only a single bid.

• Second Attempt: Bids were submitted by Mumbai-based E Smart Energy and Coimbatore-based Schnell Energy Equipments Pvt Ltd. The Street Light Department disqualified Schnell Energy on technical grounds, leaving a single bidder and forcing the Municipal Commissioner to order a re-tender.

• Third Attempt: The department reversed its previous technical evaluations. E Smart Energy was disqualified while Schnell Energy was declared eligible. E Smart Energy appealed directly to the Municipal Commissioner, alleging that Schnell Energy submitted false experience credentials and providing supporting documentation.

Scope Expansion Drives Cost to ₹663 Crore Before Collapse

Following the failure of the first three attempts, civic officials altered the tender structure for the fourth and fifth rounds. Bids were split into East and West Ahmedabad zones, expanding the scope to include Operation and Maintenance (O&M), new pole installations, Supply, Installation, Testing, and Commissioning (SITC), and CCMS smart control panels. This broader scope inflated the estimated cost to ₹663.37 crore.

However, the fourth tender ran into intense controversy over technical parameters allegedly tailored to suit European firm Twilight, while creating compliance hurdles for Indian companies. Bidders including Reliance Jio and Surat-based Memighty Inventions Pvt Ltd raised official objections against the restrictive terms. The AMC cancelled the fourth attempt before its deadline without modifying the contested clauses, while the fifth attempt drew zero participating bidders.

Sixth Attempt Drafted at ₹398.41 Crore as Vigilance Probe Continues

For the upcoming sixth attempt, the AMC has restructured the contract once again by removing the SITC component. Additional City Engineer Mahendra Ninama confirmed that unbundling SITC has brought the revised tender estimate down to ₹398.41 crore, with all eligible agencies invited to participate.

Simultaneously, four civic officials—Additional City Engineer M.K. Ninama (since transferred to the STP Department), and Deputy City Engineers Pankaj Patel, K.J. Dalolia, and U.K. Madiya—have been issued charge sheets over administrative delays. A municipal vigilance investigation into the procurement process remains ongoing.

Zone-Wise Street Light Complaints (Up to October 15, 2026)

• West Zone: 23,751
• North Zone: 17,523
• Central Zone: 15,871
• East Zone: 15,430
• North-West Zone: 12,430
• South-West Zone: 10,421
• Total: 1,21,067 complaints