India’s Energy Efficiency Services Ltd (EESL) plans to offer 600 million LED (light-emitting diode) bulbs in rural areas at ₹10 per piece, without any government support or subsidy, according to a top executive at the state-run firm.
the Proposed Gram UJALA (Unnat Jyoti by Affordable Lighting for All) scheme.
The lowest globally priced LED bulb to be offered by EESL by leveraging scale will come as a boost for Make in India and will also give India’s climate change strategy a shot in the arm under the proposed Gram UJALA (Unnat Jyoti by Affordable Lighting for All) scheme.
EESL, which is presently running the world’s largest domestic lighting programmer, is in the process of registering the Gram UJALA scheme under the United Nations’ Clean Development Mechanism (CDM), which will enable it to claim carbon credits.
The moment that the scheme is registered under CDM, we will launch Gram UJALA.
It has been observed that less than one fifth or only 18% of the 360 million LED bulbs distributed under the UJALA scheme was in rural areas.
The government’s UJALA scheme had cut LED bulb prices to₹70 apiece from around ₹310 in 2014. Under the new scheme, the revenue earned from carbon credits will contribute ₹60 per LED bulb piece, with the balance ₹10 to be paid by the rural consumer.
“We realized that a rural consumer isn’t able to pay ₹70 per LED bulb. Under the proposed scheme, we will be taking back the consumer’s incandescent and CFL (compact fluorescent lamp) bulbs and provide this LED bulb for ₹10 apiece. The balance cost and our margin will be recouped through the carbon credits earned,” Saurabh Kumar, executive vice-chairperson, EESL Group, told Mint in an interview on Saturday.
In the first phase of the new scheme in the works, 10 million LED bulbs will be offered. Of the total investment requirement of ₹4,000 crores, rural consumers will pay ₹600 crores with the balance of ₹3,400 crores accruing from carbon credit revenue.
This comes in the backdrop of the Indian government restricting companies from countries with a shared land border from participating in bids for government procurement without approval from competent authorities and ensuring compulsory purchase preference to local suppliers.
India is running the world’s largest energy efficiency programmer, with EESL offering large procurement contracts in the energy sector enabling businesses to leverage scale and achieve economy to bring down prices.
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