EESL LED Distribution MOU

Taking the next steps towards an energy efficient India, the Energy Efficiency Services (EESL) entered into separate memorandum of understandings (MOU) with Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) for the distribution of energy efficient appliances under Unnat Jeevan by Affordable LEDs and Appliances for All (UJALA) program.

The IOCL, BPCL and HPCL will begin distributing LED bulbs, LED tube lights and energy efficient fans through outlets across the country. The distribution of these energy efficient appliances will be conducted in a phased manner. In the first phase, distribution will commence from the states of Uttar Pradesh and Maharashtra.

The EESL will make the entire upfront investment to ensure availability of the products at the outlets with no upfront capital costs. The oil corporations will be responsible for providing manpower and space. The three companies together have a vast network of over 54,500 petroleum retail outlets spanning India.

“The marketing network of the three oil marketing companies is unparalleled and this tie-up will only accelerate and scale up the distribution of energy efficient appliances across the length and breadth of the country,” said Mr. Piyush Goyal.

Mercom previously reported, 250.1 million smart and energy efficient LED bulbs distributed under the UJALA program as of July 12, 2017.

The price for energy efficient appliances sold under the UJALA program are much cheaper compared to other appliances available in the market. The EESL has fixed the cost of LED bulbs at ₹70 (~$1.09), LED tube lights at ₹220 (~$3.43), and 5-star rated ceiling fans at ₹1,200 (~$18.7). Making these products available at fuel stations will help with consumer mass adoption.

Through the UJALA program, the government expects an estimated annual cumulative cost reduction in consumer bills in the range of ₹133.46 billion (~$2.08 billion) and carbon emissions reduction of approximately 2.7 crore tons of CO2 per year.