India energy services company (EESL) to promote high-quality LED bulbs at lower prices in the country

The LED bulb is being implemented in 16 states at a price of $75 - RS 95 (about $7.4 to $9.4), with the UJALA plan proposed by the government of India to replace all of the inefficient bulbs with a high efficiency, energy-saving lamp. The project by the Ministry of energy under the energy services company (EESL) through the open bidding process to purchase high-quality LED bulbs. At the end of the latest round of purchases in March 31, 2016, the lowest purchase cost was 54.90 rupees (excluding tax and administrative costs).

The government has achieved a rapid decline in the price of LED through centralized and public procurement. In the first round of procurement in January 2014, EESL won the lowest bid price of RS 310. Between September 2014 and February 2015, the price of other countries' subsequent purchases ranged from RS 204 to RS 104.

EESL has brought together all of the previously purchased prices and direct benefits from the whole country since 2014 and extended it to consumers. Specific tax and other administrative costs have been added to the centralized purchasing price, therefore, the cost of LED bulbs have been reduced to 75-95 rupees this interval. After the increase in the cost of management and the cost of distribution and promotion, the difference in the final purchasing cost of the bulb is mainly due to the difference in the tax revenue of the state.

The government through the procurement of goods and services in order to ensure the price of open and encourage competition. This makes the transaction cost and time are significantly reduced and greatly enhance the management efficiency, and this will attract more bidders to participate in, thereby increasing competition, further reducing the cost of procurement of LED bulbs.

To date, EESL has extended over 107 million 700 thousand rupees of LED bulbs throughout India, and has brought significant energy savings to the country and consumers, so far, the project has achieved energy-saving effects include:

Is expected to save 38 million kwh of electricity, is expected to reduce the peak demand for electricity consumption of 2800 megawatts, is expected to reduce the cost of daily consumer bills of RS 150 million rupees, is expected to reduce greenhouse gas emissions of about 30 thousand and 1 tons of carbon dioxide per day.

The purpose of the plan is to replace the LED 7 billion 700 million inefficient bulbs in India. It is expected that the program will also reduce the electricity load of 20 thousand MW, saving energy by 100 billion units, reducing greenhouse gas emissions by up to 80 million tons per year, and is expected to save electricity costs by RS RS 400 billion per year.

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