GRAM UJALA scheme

GRAM UJALA is a customized program of Ministry of Power for rural India to make LEDs available at affordable cost.

The scheme is based uniquely and innovatively on carbon finance and is valid till March 31, 2022.

Benefits

• LEDs will be available for only Rs 10 each for each household, in exchange for working condition old incandescent lamps.
• Each household will get up to 5 LEDs.
• These rural households will also have metres installed in their houses to account for usage.
• Impact on climate change action in India - If all 300 million lights in India were replaced, the total energy savings would be 40,743 million kWh/year, avoided peak demand of 22,743MW/year and CO₂ reductions of 37 million tons per year.

Overview of the scheme

• Under the programme, 7 watt and 12-Watt LED bulbs with 3 years warranty will be given to rural consumers against submission of working Incandescent bulbs.
• Area to be covered : In the first phase of this programme, 10 million LED bulbs will be distributed across villages of Bihar, Uttar Pradesh, Andhra Pradesh, Karnataka and Telangana. 
• Further on, carbon credit documentation will be sent to UN accredited validators for inclusion into the Shine Program of activities. Carbon credits will be prepared under the Shine Program of Activities with an option for verifying under the Voluntary Carbon Standard, depending on the needs of buyers. Carbon Credit Buyers will also be sought through an open process based on initial discussions with the market. The balance cost and margin on the LED cost will be recouped through the carbon credits earned.
• Implementation agency - Convergence  Energy Services Limited (CESL),  a wholly owned subsidiary of Energy Efficiency Services Limited (EESL), a PSU under Ministry of Power. 

The GRAM UJALA programme will have a significant impact on India’s climate change action energy savings of 2025 million KWh/year and CO2 reductions of 1.65 million T CO2/year. The programme will enable better illumination, at an affordable price of INR 10/bulb. This will usher in a better standard of life, financial savings, more economic activity, better safety for rural citizens and help in achieving a sustainable future.