Syska Wins CESL’s Tender for Gram Ujala LED Scheme

Syska LED has won a uniquely structured tender by state-owned EESL’s arm, Convergence Energy Services Ltd (CESL), to supply LEDs for homes in rural India based on carbon finance.

In a first-of-its-kind structure, CESL had invited participation of bidders for co-investment on a revenue sharing basis, where costs and profits would be shared in a manner that will encourage public-private participation in climate change mitigation.

As per the terms of the tender, Syska has been downside protected through a fixed price offered by CESL; upside from carbon credits has been shared in equal proportion between the two parties.

Commenting on the partnership, Mahua Acharya, MD & CEO of CESL, said, “Gram Ujala has been appreciated by the Government and rural beneficiaries. 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 Government to work together for the common goal of climate change mitigation.”

Under the agreement, CESL will be procuring 70 lakh 12-watt LED lamps, and 30 lakh 7-watt lamps. Both Syska and CESL will 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. LEDs will be distributed to homes in rural India at a minimal price of Rs 10 each.

Currently, the distribution has already been started in the states of Bihar and Uttar Pradesh. CESL is also planning to distribute such LED bulbs in Gujarat, Andhra Pradesh and Maharashtra.

Commenting on the development, Rajesh Uttamchandani, Director, Syska LED, said, “Government is working tirelessly to ensure optimal electricity supply and proper lighting in rural parts of the country. 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.”

CESL has designed the Gram Ujala programme with an aim to support widespread distribution for rural consumers. Energy savings from the use of efficient lights will reduce households’ energy bills, whilst enabling higher disposable income and savings.