Govt-run EESL rejects allegations on procurement of LED bulbs

Energy Efficiency Services Ltd (EESL) has refuted the allegations on procurement of LED bulbs on Tuesday stating the allegations are false, misleading and devoid of any facts.

Union Power Minister Piyush Goyal addresses at the World Environment Conference, organised by the National Green Tribunal, in New Delhi on March 26, 2017. Image Source: IANS

Highlights:

1. LED bulbs are procured by the company in the most transparent and professional manner, EESL said

2. The procurement by Energy Efficiency Services Ltd (EESL) is through e-tendering and the RfP is not only announced in leading national newspapers but is also uploaded on its website as per the norms prescribed

3. The procurement norms for the LED programmes allow only those bidders who have manufacturing facilities in India, cited the company

In response to some allegations by media outlets, Energy Efficiency Services has refuted the allegations on procurement of LED bulbs on Tuesday stating the allegations are false, misleading and devoid of any facts.

"LED bulbs are procured by the company in the most transparent and professional manner. Till date, over 22 crore LED bulbs have been sold under the Unnat Jeevan by Affordable LEDs for All (UJALA) scheme, leading to a savings in consumer electricity bills by Rs 11,500 crore," the Ministry of Power said in an official statement.

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"The company follows a transparent procurement process. The procurement by Energy Efficiency Services Ltd (EESL) is through e-tendering and the RfP is not only announced in leading national newspapers but is also uploaded on its website as per the norms prescribed. The procurement policy is approved by the Board and is consistent with the procurement norms of the Government, CPSUs and follows all the guidance of CVC and CAG," EESL further said in a statement.

The procurement norms for the LED programmes allow only those bidders who have manufacturing facilities in India. As a result, almost all LED bulbs are being assembled in India and the manufacturing capacity has risen to about three to four crore LED bulbs every month now from about one to two lakh three years ago, it further added.

According to The Economic Times report dated March 23 this year, the LED industry had asked the government to withdraw its bulbs distribution scheme, alleging it is resulting in price distortion and discouraging retailers from selling the lamps.

However, Energy Efficient Service Ltd (EESL), nodal agency for the distribution programme, rubbished the allegation, with its managing director Saurabh Kumar saying data shows that the scheme is helping the industry grow at a rapid scale.

Kumar said the industry perception runs contrary to facts. “There has been a 400% growth in LED sales by industry in the last two years because of the UJALA scheme."

“However, we hear many retailers and distributors complain that continued government role in distribution of these lamps to consumers is impeding further growth of LED lamp adoption as many electrical retailers are shying away from carrying LED lamps because they see government distribution as a potentially big threat to their livelihood," the news report said quoting Philips Lighting India vice chairman Harshavardhan Chitale, as saying.

On pricing of LED bulbs, EESL said,"The prices of LED bulbs have reduced by 88% while the quality has improved. The procurement price of 7 W LEDs in January 2014 was Rs 310 which is now reduced to Rs 38 in August 2016 for a 9 W LED bulb. Retail prices of LED bulbs have come down to 30% of what they were three years ago."

"The LED bulbs procured under UJALA undergo rigorous quality check and are required to have LM 79 and LM 80 certifications as per the BIS specifications. EESL has a three-tier quality control mechanism because of which, of the more than 22.1 crore LEDs sold/distributed, the fault rate is well below 1%, which is the lowest in the world," it said

EESL is a company under the administrative control of Ministry of Power and the implementing agency for National LED lighting programmes that were inaugurated by prime minister Narendra Modi on January 5, 2015.