Syska to distribute LED bulbs in rural areas for Rs 10 under Gram Ujala

In a first of a kind project, Syska LED will distribute LED bulbs in rural areas at Rs 10 per piece and be partially paid back in carbon credits. Under the Gram Ujala scheme by Convergence Energy Services Ltd (CESL), bidders were invited for co-investment on a revenue sharing basis, where costs and profits would be shared with CESL.

“In this tender, Syska is downside protected through a fixed price offered by CESL; upside from carbon credits is shared in equal proportion between the two parties,” said a statement by CESL.

CESL is a 100 per cent subsidiary of EESL Limited, which focuses on energy solutions that lie at the confluence of renewable energy, electric mobility, and climate change. Gram Ujala scheme was launched by the ministry of power this year to give LED bulbs in rural areas at Rs 10 per piece, without any subsidy support and financed entirely through carbon credits.

“We were very happy to see an enthusiastic response from participants in a structure that promises to be a sustained partnership between a public and private company. Based on an open tender process, we are happy to announce that Syska has won the bid. I hope to see more private players participate with the Government to work together for the common goal of climate change mitigation,” said Mahua Acharya, MD & CEO, CESL.

CESL will procure seven million 12-watt LED lamps, and three million 7-watt lamps. Both Syska and CESL will share half the cost and the revenue arising from the sale of carbon credits.

Currently, the Gram Ujala program is running in Bihar and Uttar Pradesh. CESL said the next few states are Gujarat, Andhra Pradesh and Maharashtra.

Rajesh Uttamchandani, Director, Syska LED stated, “As a leading brand of India, Syska is pleased to find mechanisms that enable private sector players to join hands towards larger common objectives such as energy conservation, climate change mitigation and business models for enabling such basic services as good quality lights at price points that are affordable for rural India. We look forward to a long and fruitful partnership.”