Union Government on 8 October 2014 decided to sell LED bulbs to households at 10 rupees against the market price of 400 rupees. In this regard, Union Power Ministry launched a business model enabling the sale of LED bulbs to households at 10 rupees against the market price of 400 rupees.
As per the envisioned business model, the Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL) will work with electricity distribution companies (discoms) to develop a business model under which EESAL will procure LED bulbs in bulk and sell the bulbs to households at 10 rupees. The discoms will then repay EESL, over a period of five to eight years from the savings that mount up due to use of this energy efficient lighting technology.
The Union Power Ministry has already decided that all below-poverty line households at the time of electrification will be provided LED technology under the Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY).
Meanwhile, according to MoU signed between EESL and the Andhra Pradesh government, EESL completed the procurement of two million LEDs.
LEDs (Light Emitting diode) are emerging as the most energy-efficient source of lighting as they use one-tenth of the energy of a normal incandescent bulb and half as much energy as a Compact Fluorescent Lamp (CFL) to produce the same amount of light.
• Union Ministry of Power set up Energy Efficiency Services Limited (EESL) as a Joint Venture of NTPC Limited, PFC, REC and POWERGRID to facilitate implementation of energy efficiency projects.
• EESL works closely with BEE and is leading market activities of the National Mission for Enhanced Energy Efficiency (NMEEE).
About Bureau of Energy Efficiency (BEE)
The Government of India set up Bureau of Energy Efficiency in 2002 under the provisions of the Energy Conservation Act, 2001.
The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001.
The primary objective of BEE is to reduce energy intensity of the Indian economy which will be achieved with active participation of all stakeholders
Who: Union Government
When: 8 October 2014