LED bulbs are now priced at `75-95 in 16 states under UJALA
The LED bulbs from leading manufacturers were procured through a transparent bidding process which ended on March 31, 2016; the lowest procurement cost was Rs. 54.90 (exclusive of taxes and administrative costs). The project is executed by Energy Efficiency Services Limited (EESL).
The government, through aggregation and transparent procurement declined the prices rapidly of the LED bulbs. In the first round of procurement held in January 2014, EESL achieved the lowest bid at Rs. 310. The prices for the subsequent procurements for other states, during September 2014 to February 2015, ranged between Rs. 204 to Rs. 104.
EESL has pooled the prices of all the previous procurements since 2014 and the passed on the direct benefit to the consumers across states. Various state-specific taxes and other administrative costs like distribution, awareness, etc are added to the pooled procurement price. Therefore, the cost of the LED bulb has been brought down to a price range of Rs. 75 - Rs. 95.
The Government has ensured transparency and encouraged competition by using e-procurement of goods and services. This has resulted in significant reduction in transaction cost and time and enhanced process efficiency.
The UJALA scheme is being monitored in a transparent manner through a national dashboard (www.ujala.gov.in).
The target of the programme is to replace all the 77 crore incandescent bulbs sold in India by LEDs. This will result in reduction of 20,000 MW load, energy savings of 100 billion kWh and Green House Gas (GHG) emissions savings of 80 million tons every year. The annual saving in electricity bills of consumers will be Rs. 40,000 crore, considering average tariff of Rs. 4 per kWh.