LED bulb prices reduced under UJALA scheme

Energy Efficiency Services Limited (EESL) has announced that in its latest round of procurement, has achieved a considerable drop in LED bulb prices under UnnatJyoti by Affordable LEDs for All (UJALA) scheme.On the last day of March, 2016 EESL has achieved a new procurement price of Rs. 54.90 (exclusive of taxes).  EESL has pooled the prices of all the previous procurements and the benefit of this reduction will be directly passed on to the consumers across states. Therefore, the cost of the LED bulb has been brought down to a price range of Rs. 75-Rs. 95 after addition of administrative costs, distribution and awareness costs along with state-specific taxes. Therefore, the variation in the final cost of the bulbs is owing to the difference in taxes across states.

The distribution price of LED bulbs will vary from each state due to the local applicable taxes. Following is the list of distribution price of UJALA LED bulbs in respective states:

The Government has ensured transparency and encouraged competition by using e-procurement of goods and services. This has resulted in significant reduction in transaction cost and time and enhanced process efficiency. This in turn has led to a much larger participation of bidders thereby increasing competition and reducing the procurement cost of LED bulbs. In the first round of procurement held in January 2014, for Puducherry, EESL achieved a cost of Rs. 310. The prices for the subsequent procurements for other states, during September 2014 to February 2015, ranged between Rs. 204 to Rs. 104. EESL through aggregation and transparent procurement has achieved a rapid decline in LED prices. The last procurement price of LED bulbs, held in March 2016 was Rs. 54.90. EESL, in the past has pooled all the prices and successfully passed on this price advantage to the consumers and it will continue to do so in future as well.