May 31, 2016: Energy Efficiency Services Limited (EESL) has been distributing reasonable LED bulbs under Government of India’s UnnatJyoti by Affordable LEDs for All (UJALA)scheme across 16 states in the nation between price ranges of Rs 75- 95. ESSL buys premium LED bulbs from principal manufacturers through a transparent bidding procedure.
In the most recent round of procurement, the lowest procurement price was Rs. 54.90 exclusive of administrative expenses and taxes.
The government, through translucent procurement has attained a quick decline in LED costs. In the first round of procurement in January 2014, EESL accomplished the lowest bid at Rs. 310. The prices for the following procurements for other states, during September 2014 to February 2015, ranged between Rs. 204 to Rs. 104.
ESSL distributes LED bulbs under UJALA across 16 Indian states
EESL has pooled the costs of all the earlier procurements since 2014 and passed on the direct advantage to the customers across states. A variety of state-specific taxes and other managerial costs such as allocation, awareness and so on are added to the pooled procurement cost.
Hence, the price of the LED bulb has been reduced to a cost range of Rs. 75 – Rs. 95, following adding up administrative costs, distribution and awareness cost. Consequently, the difference in the final price of the bulbs is due to the variation in taxes across states.
The Government has guaranteed lucidity and supported competition via e-procurement of goods and services. This has lead to important decrease in transaction cost and time and improved process competence.
The UJALA scheme is being checked in a translucent manner via a national dashboard .As of now , EESL has distributed more than 10.77 crore LED bulbs across the nation and the scheme has resulted in major savings to the state and customers who are using such bulbs.
The objective of the scheme is to replace the entire 77 crore incandescent bulbs across the nation with LEDs. This will help in reducing 20,000 MW load along with energy savings of 100 billion kWh and Green House Gas (GHG) emissions savings of 80 million tons on an yearly basis. The yearly saving in electricity bills of customers will be Rs. 40,000 crore, bearing in mind average tariff of Rs. 4 per kWh.