Gram Ujala scheme Launched in Varanasi

March 24, 2021

Power and new and renewable energy minister, Raj Kumar Singh, launched “Gram Ujala scheme” on March 24, 2021 in Varanasi.

Gram Ujala Scheme

Gram Ujala scheme offers world’s cheapest LED bulbs across rural areas at rupees 10. This scheme is financed on the basis of carbon credits. It will claim carbon credits under “United Nations’ Clean Development Mechanism (CDM)”. Carbon credits will contribute to rupees 60 per piece while rupees 10 will be paid by rural consumer Under the scheme, incandescent and compact fluorescent lamp (CFL) bulbs will be taken back from the rural customers.

Significance of Scheme

Scheme will boost rural employment as well as local economies. It will also uplift villages of India and will contribute in climate change mitigation. Use of LED Bulbs will help in saving energy because a 12-watt LED bulb provides light equivalent to 100-watt incandescent bulb. It will result in to savings of 2025 million kWH per year and reduce the CO2 emission by 1.65 million tonne CO2 per year. The scheme will enable better illumination at the affordable price.

First Phase

First phase of this scheme was launched from Arrah district in Bihar. It does not come with any government support or subsidy. Under this phase, 15 million LED bulbs will be distributed across villages of Arrah (Bihar), Vijayawada (Andhra Pradesh), Varanasi (Uttar Pradesh), Nagpur (Maharashtra) and western Gujarat. Under phase 1, around one crore 50 lakh LED bulbs will be distributed.

Who will offer bulbs?

LED bulbs under the scheme will be offered by state-run Convergence Energy Services Ltd (CESL) which is a subsidiary of Energy Efficiency Services Ltd. Around 600 million LED bulbs will be offered in rural areas at rupees 10 per piece.

Background

India is second-largest LED market across the world by value. Government’s previous Unnat Jyoti by Affordable Lighting for All scheme (UJALA Scheme) was providing LED bulb at rupees 70 per piece.

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