CESL Issues First-of-its-Kind Tender to Procure 1 Cr LED Bulbs under Gram Ujala Programme

State-owned EESL’s subsidiary Convergence Energy Services Ltd (CESL) has issued a first-of-its kind tender to procure 1 crore LED bulbs for its Gram Ujala programme.

March 16, 2021. By Manu Tayal

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State-owned EESL’s subsidiary Convergence Energy Services Ltd (CESL) has issued a first-of-its kind tender to procure 1 crore LED bulbs for its Gram Ujala programme.

Through this tender, CESL has been looking for participation of bidders for co-investment on a revenue sharing basis.

Under the Gram Ujala programme, CESL distributes high quality LED bulbs, at an affordable price in rural areas.

Explaining about the tender Mahua Acharya, MD and CEO of CESL, said, “the objective is to involve private companies in the delivery of climate change mitigation in rural India and create an example of an innovative public-private participation. Through this tender, we are asking private companies to share 50 per cent of the cost, and therefore 50 percent of the revenue, arising from the sale of Carbon Credits and the opportunity to participate in nation building. With CESL’s new and innovative business model, we will be able to maximise reach of the LED bulbs, and also contribute to climate action.”

CESL is planning to procure 70 lakh 12-watt LED lamps, and 30 lakh 7-watt lamps. As per the last discovered prices of these LED lamps, the 12-watt lamp will be considered at Rs 75 per bulb and Rs 42 for 7-watt bulb.

Under this procurement, the costs and revenues will be split. CESL said that it will guarantee a payment of 50 per cent of the last discovered price, giving private companies assurance of a floor price.

On the other hand, bidder will have to quote a differential price per bulb, that is, the price that the bidder wants to receive for their LED over and above the floor price. The differential will be called the participation price. The bidder will need to quote a participation price for both types of bulb separately. L1 will be determined on the basis of the least participation price in each type of bulb.

“This scheme can be particularly valuable for companies with emissions reduction targets. It can also be strategic for companies to participate in collaboration with the government,” she added.

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