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NEW DELHI: Syska LED has won a marquee tender to supply 10 million light emitting diode (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).

Gram Ujala is an ambitious scheme offering the world’s cheapest LED bulbs in rural areas at a mere 10, with no government support or subsidy. Under the scheme, the revenue earned from carbon credits will contribute 60 per LED bulb piece, with the balance 10 to be paid by the rural consumer.

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“As part of this agreement, CESL 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 percent 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," CESL said in a statement.

Under the United Nations’ Clean Development Mechanism (CDM), the scheme will claim carbon credits. Also, under the new scheme, the rural consumer’s incandescent and CFL (compact fluorescent lamp) bulbs will be taken back.

“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 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.

Mint earlier reported about the proposed scheme for offering 600 million LED bulbs in rural areas at 10 per piece. According to EESL, India is currently the second-largest LED market in the world by value, 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.

In its first phase launched from Arrah in Bihar, 15 million LED bulbs will be distributed across villages of Arrah (Bihar), Varanasi (Uttar Pradesh), Vijaywada (Andhra Pradesh), Nagpur (Maharashtra), and western Gujarat.

“As on 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. In addition to helping improve energy access in rural areas, the mandatory domestic manufacturing clause in sourcing LED bulb tenders through the scheme will expedite India’s efforts to become an integral part of global supply chains, as firms look to move production lines out of China.

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