Govt distributes 36.78 cr LEDs under UJALA scheme – Economic Times
The Power Ministry has distributed 36.78 crore LED lights under the UJALA programme in seven years, which saved 47,778 million units of electricity per annum. Unnat Jyoti by Affordable LEDs for All (UJALA) was launched by the Prime Minister on January 5, 2015.
In a short span, the programme has evolved to be the world’s largest zero-subsidy domestic lighting scheme that addresses concerns like high electrification costs and high emissions that result from inefficient lighting, a power ministry statement said.
According to the statement, as of today, more than 36.78 crore LEDs have been distributed across the country.
The success of the programme — which has transformed the lives of tens of thousands of people — lies in its inimitable strategic approach to energy efficiency, it said.
UJALA succeeded in bringing down the retail price of LED bulbs from Rs 300 to 350 per bulb to Rs 70-80 per bulb, it informed.
Apart from making affordable energy accessible to all, the programme also resulted in massive energy savings.
As of today, 47,778 million kWh per annum energy has been saved. 9,565 MW of peak demand has been avoided, along with 3,86 crore tonnes of reduction in CO2 emissions, the statement said.
UJALA has been readily adopted by all the states. It has helped in reducing annual household electricity bills. Consumers have been able to save money, improve their quality of life, and contribute to India’s economic growth and prosperity.
Under the programme, the government has ensured transparency and encouraged competition by e-procurement of goods and services. This has resulted in a significant reduction in transaction cost and time, enhancing process efficiency. With UJALA, the cost of LED bulbs has come down by 85 per cent.
This, in turn, has led to a much larger pool of bidders, enhanced quality of the product and availability of better specifications for the consumers.
Leveraging increased industry competition and mass procurement, state-owned EESL has adopted an innovative procurement strategy, which resulted in well-known benefits and is now known as the USP of programme UJALA.
UJALA provides an impetus to the domestic lighting industry. It encourages Make in India, as domestic manufacturing of LED bulbs has increased from 1 lakh per month to 40 million per month, the ministry said.
UJALA also provides economies of scale to manufacturers through regular bulk procurement. This enables manufacturers to bring down the cost of LEDs for the retail segment as well. The procured price has been reduced by almost 90 per cent between 2014 and 2017, from Rs 310 to Rs 38 per unit, it stated.
The programme has also garnered attention from the top management schools of India. It is now a part of the Leadership case study in the Indian Institute of Management (IIM), Ahmedabad. Furthermore, it is also under consideration for being included in the curriculum of Harvard Business School, it stated.
Credits to UJALA, energy-efficient and cost-saving lighting has been made available to the middle class and lower-middle-class consumers. As part of its inclusive growth strategy to enable growth in lower-income communities, the EESL has also enrolled Self-Help Groups (SHGs) for distribution of LED bulbs under the UJALA programme, it stated.
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