• India
  • Mar 20

Power ministry launches Gram Ujala scheme in 5 states

The Convergence Energy Services Ltd (CESL) launched the Gram Ujala programme under which high quality energy efficient LED bulbs will be given for Rs 10 per piece in certain villages of five states in the first phase.

CESL is a wholly-owned subsidiary of the state-run Energy Efficiency Services Ltd (EESL).

The programme was launched by Power Minister R.K. Singh in Bihar.

The minister said that if all 300 million lights in India were replaced, the total energy savings would be 40,743 million kWh/year, and CO2 reductions of 37 million tons per year.

With price being one of the principle 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 a household’s energy outlay, enabling higher disposable income and savings.

What is Ujala scheme?

Unnat Jyoti by Affordable LEDs for All (UJALA) was launched on January 5, 2015. 

It is being implemented by Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the ministry of power.

Under UJALA, EESL has distributed over 36.69 crore LED bulbs across India. This has resulted in estimated energy savings of 47.65 billion kWh per year with avoided peak demand of 9,540 MW and estimated GHG emission reduction of 38.59 million tonnes CO2 per year. 

Additionally, over 72 lakh LED tube lights and over 23 lakh energy efficient fans have also been distributed at affordable price under this programme.

UJALA has brought a market transformation in the energy efficiency sector. The switch from inefficient incandescent bulbs to LEDs is helping families reduce their electricity bills while also enabling them to access better brightness in homes. 

The domestic LED market has grown significantly beyond the UJALA programme, with the industry selling over 1.15 billion LEDs, far exceeding the UJALA programme’s target of 700 million LED units.

What is Grama Ujala programme?

In the first phase of this programme, 15 million LED bulbs will be distributed across villages of Aarah (Bihar), Varanasi (Uttar Pradesh), Vijayawada (Andhra Pradesh), Nagpur (Maharashtra), and villages in western Gujarat. 

Under the programme, 7 watt and 12-watt LED bulbs with three years of warranty will be given to rural consumers on submission of working incandescent bulbs. 

The Gram Ujala programme will be implemented in villages of the five districts only and consumers can exchange a maximum of five LED bulbs. These rural households will also have metres installed in their houses to account for usage. 

It will enable better illumination, at an affordable price. This will usher in a better standard of life, financial savings, more economic activity, and better safety for rural citizens, as per the statement.

The programme will be financed entirely through carbon credits and will be the first such programme in India.

Carbon credit documentation will be sent to UN-accredited validators for inclusion into the Shine Programme of activities. Carbon credits will be prepared under the Shine Programme 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.

Convergence Energy Services Limited

Convergence Energy Services Limited (CESL) is a subsidiary of state-owned Energy Efficiency Services Limited, under the ministry of power. 

CESL focuses on energy solutions that lie at the confluence of renewable energy, electric mobility and climate change. It builds upon the decentralised solar development experience in under-served rural communities in India, and over time, using battery energy storage, will deliver renewable energy solutions to power agricultural pumps, street lighting, domestic lighting and cooking appliances in villages. 

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