Distribution of 36.78 cr LEDs under UJALA scheme by Govt
In seven years, the Power Ministry distributed 36.78 crores LED lights under the program known as UJALA. It saved 47,778 million units of electricity per annum. Unnat Jyoti by Affordable LEDs for All (UJALA) was initiated by the Prime Minister on 5, January 2015.
The Power Ministry stated that this program has become the world’s largest zero-subsidy domestic lighting scheme that addresses the trouble of inefficient lighting due to the high electrification costs and high emissions.
As per the recent statements, more than 36.78 crore LEDs have been given out across the country.
This program has changed the lives of tens of thousands of people, and its success lies in its inimitable strategic approach to energy efficiency.
In 2014, UJALA has succeeded in reducing the retail price of LED bulbs from RS 300 to 350 per bulb to Rs 70-80 per bulb. Aside from making affordable energy accessible to all, the program has resulted in massive energy savings.
The statement mentioned that until now, 47,778 million kWh per annum energy has been saved. 9,565 MW of peak demand has been avoided, as well as a reduction of 3.86 crore tonnes in CO2 emissions.
All the states have accepted this program. It has reduced the annual household electricity bills. Money-saving, improvement in their quality of life, and increase in India’s economic growth and prosperity are the changes that have in resulted in adopting this program.
Under the program, the government has made sure transparency and encouraged competition by supplier exchange of goods and services. This has led to a reduction in the cost of transaction and time, increasing the process efficiency. With UJALA, the cost of LED bulbs has been reduced by 85 percent.
This has created a larger pool of bidders, increasing the quality of the product and the availability of better specifications for the consumers.
By leveraging increased industry competition and mass procurement, State-owned EESL has taken up an innovative procurement strategy. The adoption resulted in well-known benefits and is now known as the USP of the UJALA program.
UJALA provides a drive to the domestic lighting industry. The domestic manufacturing of LED bulbs has increased from 1 lakh per month to 40 million per month and thus encourages Make in India.
Through regular bulk purchase, UJALA provides economies of scale to manufacturers thus, enabling manufacturers to reduce the cost of LEDs for the retail segment. Between 2014 and 2017, the procured has been reduced from Rs 310 to Rs 38 per unit i.e, nearly 90 percent.
The program has gained attention from the top management schools as currently, it is a part of the Indian Institute of Management (IIM) for the leadership case study, Ahmedabad. Harvard Business School is in the process of including it in its curriculum.
UJALA program has made the middle class and lower-middle-class consumers experience energy-efficient and cost-saving lighting. The EESL has taken up Self-Help Groups (SHGs) for distributing LED bulbs as a part of an inclusive growth strategy to enable growth in lower-income communities.
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