Recently Government of India has launched the “Gram Ujala Scheme” to provide the cheapest LED bulbs in the rural areas in India. The scheme was launched by the Union Minister power and new and renewable energy, Raj Kumar Singh.

Gram Ujala Scheme

  • It is an ambitious scheme which offers the world’s cheapest LED bulbs in rural areas.
  • This is the first such scheme introduced in India.
  • Under the Scheme, Government provides the LED Bulbs in these areas at a mere Rupees 10.
  • IT also furthers its climate change strategy and strengthen the self-reliance credentials.
  • It does not come with the government’s support or subsidy.
  • Bulbs are offered by the state-run Energy Efficiency Services Limited’s subsidiary Convergence Energy Services Limited.
  • It proposes for distributing some 600 million LED at Rs 10 in the rural areas.
  • It will be financed entirely through the carbon credits which will be claimed under the “United Nations’ Clean Development Mechanism”.
  • The revenue from the carbon credit will contribute to Rs 60 per LED.
  • It also proposes to take back the incandescent and compact fluorescent lamp bulbs of the rural consumers.
  • After submitting the bulbs, the consumers will get 7 watt and 12 watt LED bulbs with 3-years warranty.

Phase First of the scheme

Under this phase, the scheme was launched from Bihar’s Arrah district. In this phase around 15 million LED bulbs will be distributed in the villages of Arrah (Bihar), Varanasi (Uttar Pradesh), Vijayawada (Andhra Pradesh), Nagpur (Maharashtra), and western Gujarat.

Backdrop

In 2014, the previous Unnat Jyoti by Affordable Lighting for All (Ujala) scheme had cut the LED bulb prices to Rs 70 per piece from around Rs 310.

Significance

India is currently the second-largest LED market in the world by value. So, this scheme will help in avoiding the peak electricity demand of 9,428 MW.

Gram Ujala Scheme for Rural Areas