Syska LED has won a marquee tender to supply 10 million light-emitting diodes (LED) bulbs in rural areas, under the recently launched Gram Ujala scheme to state-run Energy Efficiency Services Ltd’s subsidiary Convergence Energy Services Ltd (CESL).
Syska Offering The World’s Cheapest LED Bulbs In Rural Areas
Syska LED is offering the world’s cheapest LED bulbs in rural areas at a mere Rs 10 under the Gram Ujala scheme with no government support or subsidy.
The revenue earned from carbon credits will contribute Rs 60 per LED bulb piece under the scheme and the remaining Rs 10 will be paid by the rural consumer.
Mahua Acharya, MD & CEO, CESL, said, “Gram Ujala has been appreciated by the government and rural beneficiaries. We were very happy to see an enthusiastic response from participants in a structure that promises to be a sustained partnership between public and private company. Based on an open tender process, we are happy to announce that Syska has won the bid. I hope to see more private players participate with Government to work together for the common goal of climate change mitigation.”
Both Syska And CESL Will Share 50% Of The Cost And Revenue
CESL said in a statement that it will be procuring 70 lakh 12-watt LED lamps, and 30 lakh 7-watt lamps.
Both Syska and CESL will share 50 per cent of the cost and therefore 50 per cent of the revenue, arising from the sale of carbon credits and the opportunity to participate in nation-building. LEDs will be distributed to homes in rural India at a minimal price of Rs. 10 each.
The scheme would demand carbon credits under the UN’s Clean Development Mechanism (CDM). And under the new programme, incandescent and CFL (compact fluorescent lamp) bulbs will be collected from rural residents.
“Syska LED has won a uniquely structured tender by public sector entity Convergence Energy Services Limited (CESL) to supply LEDs for homes in rural India based on carbon finance. In a first-of-its-kind structure, CESL had invited the participation of bidders for co-investment on a revenue-sharing basis, where costs and profits would be shared in a manner that will encourage public-private participation in climate change mitigation,” the statement added.
India, The World’s Second-Largest LED Market
India is currently the world’s second-largest LED market by value, according to EESL, with the Ujala scheme likely to help avoid peak electricity demand of 9,428 megawatts.
“In this tender, Syska is downside protected through a fixed price offered by CESL; upside from carbon credits is shared in equal proportion between the two parties,” the statement said.
The Gram Ujala Programme
The Gram Ujala programme was launched by the Minister of State for Power and New & Renewable Energy, RK Singh in March 2021.
In its first phase of the Gram Ujala programme, the distribution started from Arrah in Bihar. Eventually, 15 million LED bulbs will be distributed across villages in Arrah (Bihar), Varanasi (Uttar Pradesh), Vijaywada (Andhra Pradesh), Nagpur (Maharashtra), and western Gujarat.
“As of date, distribution is ongoing in Bihar and Uttar Pradesh. The next few states are Gujarat, Andhra Pradesh and Maharashtra,” the statement said.
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.
The mandatory domestic manufacturing clause in sourcing LED bulb tenders through the scheme would support India’s efforts to become an integral part of global supply chains.
Companies are seeking to pull production lines out of China. Companies are also trying their best to help increase energy access in rural areas.