CESL distributes 5 million LED bulbs under Gram Ujala programme

Gram Ujala scheme was launched in Prime Minister Narendra Modi’s Lok Sabha constituency Varanasi in March this year and offers the world’s cheapest LED bulbs in rural areas at ₹10. The target is to distribute 10 million LED bulbs in 2 million households till March next year.

“Gram Ujala scheme is being implemented in rural households in Bihar, Uttar Pradesh, Andhra Pradesh, Karnataka, and Telangana,” union power ministry said in a statement.

Gram Ujala programme is financed entirely through carbon credits. Under the United Nations’ Clean Development Mechanism (CDM), the scheme claims carbon credits. Also, under the scheme, the rural consumer’s incandescent and CFL (compact fluorescent lamp) bulbs are taken back.

“CESL is providing high-quality 7-Watt and 12-Watt LED bulbs with 3 years guarantee at a cost of INR 10 per bulb in exchange of working incandescent bulbs. Every household can exchange a maximum of 5 bulbs. The distribution has resulted in energy savings of 71,99,68,373.28 units per year with cost savings of 250 crores per year in the rural areas of aforementioned states,” the statement said.

The bulbs are offered by state-run Energy Efficiency Services Ltd’s subsidiary by leveraging scale. Mint earlier reported about the proposed scheme in rural areas.

“Working on the same financial model of carbon credits, we will be expanding this to rural parts of other states upon completion of Project Crore,” Mahua Acharya, MD & CEO, CESL said in the statement.

India is currently the second-largest LED market in the world by value. The government’s previous Ujala (Unnat Jyoti by Affordable Lighting for All) scheme had cut LED bulb prices to ₹70 apiece from around ₹310 in 2014. Under Gram Ujala, the revenue earned from carbon credits contributes ₹60 per LED bulb piece, with the balance ₹10 to be paid by the rural consumer.