The initiative has been launched to target rural consumers and provide them high quality LED bulbs at an affordable price of INR 10/bulb
1 crore 50 lakh LED bulbs will be distributed in phase 1 resulting in energy savings of 2025. million KWh/year and CO2 reductions of 1.65 million T CO2/year
Convergence Energy Services Limited (CESL), a wholly owned subsidiary of Energy Efficiency Services Limited (EESL), unveiled the GRAM UJALA programme today. Under this programme, CESL will distribute high quality LED bulbs, at an affordable cost of 10 rupees per bulb in rural areas. In the first phase of this programme, 15 million (1.5 crore) LED bulbs will be distributed across villages of Aarah (Bihar), Varanasi (Uttar Pradesh), Vijaywada (Andhra Pradesh), Nagpur (Maharashtra), and village in western Gujarat. Gram Ujala programme will be financed entirely through carbon credits and will be the first such programme in India.
The GRAM UJALA programme was launched today by Hon’ble Minister of State for Power & New and Renewable Energy Shri R K Singh in Arrah, Bhojpur district in Bihar.
The GRAM UJALA programme will have a significant impact on India’s climate change action energy savings of 2025 million KWh/year and CO2 reductions of 1.65 million T CO2/year. The programme will enable better illumination, at an affordable price of INR 10/bulb. This will usher in a better standard of life, financial savings, more economic activity, and better safety for rural citizens.
Minister of State for Power & New and Renewable Energy R K Singh said, “It is a moment of great pride and joy that we are able to find a solution that will provide affordable and high-quality LEDs to our rural population. I commend the efforts of Convergence (CESL) for their relentless work in taking the country’s vision forward. I am sure such commitment and effort will be replicated across rural areas of India.”
Alok Kumar, Secretary, Ministry of Power said, “This is a very important initiative based on an innovative model utilising Carbon Credits. Gram Ujala will not only give a fillip to our fight against climate change by increasing energy efficiency, but also usher in a better standard of life, financial savings, and better safety for the citizens in rural areas.”
Saurabh Kumar, Executive Vice Chairman, EESL said, “Despite its tremendous impact and reach, the UJALA programme could not touch every village because the rural consumers were not able to pay INR 70 per LED bulb. With GRAM UJALA scheme, we will be taking back the consumer’s incandescent bulbs and provide this high-quality LED bulb for INR 10 per bulb.”
Commenting on the initiative, Mahua Acharya, CESL’s CEO&MD said, “I am excited to be launching this initiative for rural India. It is innovative, but risky and yet extremely important as every LED used saves money for people and reduces the need for fossil fuel usage.”
Under the programme, 7 watt and 12-Watt LED bulbs with 3 years warranty will be given to rural consumers against submission of working Incandescent bulbs. The Gram Ujala programme will be implemented in villages of the 5 districts only and consumers can exchange a maximum of 5 LED bulbs. These rural households will also have metres installed in their houses to account for usage. Further on, carbon credit documentation will be sent to UN accredited validators for inclusion into the Shine Program of activities. Carbon credits will be prepared under the Shine Program of Activities with an option for verifying under the Voluntary Carbon Standard, depending on the needs of buyers. Carbon Credit Buyers will also be sought through an open process based on initial discussions with the market. The balance cost and margin on the LED cost will be recouped through the carbon credits earned.
With price being one of the principal barriers, the GRAM UJALA programme has been designed to support widespread distribution by removing the chief barrier for rural consumers. In addition, the energy savings garnered will reduce household’s energy outlay, enabling higher disposable income and savings. The programme will provide clean energy access and make a significant contribution towards mitigating climate change and achieving a sustainable future.