LED bulbs are being implemented in 16 states at a price of 75-95 rupees (about 7.4 to 9.4 yuan) at the UJALA program proposed by the Indian government to replace all inefficient bulbs with energy-efficient lamps. The project is sourced by the Energy Efficiency Service Company (EESL) of the Ministry of Power to purchase high-quality LED bulbs through an open bidding process. In the latest round of procurement, which ended on March 31, 2016, the lowest purchase cost was Rs. 54.90 (excluding taxes and administrative expenses). The government has achieved a rapid decline in the price of LEDs through centralized and open procurement. In the first round of procurement in January 2014, EESL received a minimum bid of 310 rupees. Subsequent purchase prices for other countries between September 2014 and February 2015 ranged from Rs. 204 to Rs 104. EESL has brought together all previous purchase prices and direct benefits from the entire country since 2014 and extends them to consumers. Various specific taxes and other administrative costs have been added to the centralized purchase price, so the cost of LED bulbs has fallen to the 75-95 rupee range. After increasing management costs and distribution and promotion costs, the difference in the final purchase cost of the bulb is mainly due to differences in state tax revenues. The government purchases goods and services electronically to ensure that prices are open and encourage competition. This has significantly reduced transaction costs and time and greatly improved management efficiency, which in turn has attracted more bidders to participate, thereby increasing competition and further reducing the procurement cost of LED bulbs. To date, EESL has promoted more than 10.77 million rupees of LED bulbs throughout India and has brought significant energy savings to the country and consumers. So far, the energy savings achieved by the project include: It is estimated that energy consumption will be 38 million kWh per day. It is estimated that the peak demand for electricity will be reduced by 2,800 megawatts. It is estimated that the daily cost will reduce the consumer's bill by 150 million rupees, and it is estimated that greenhouse gas emissions will be reduced by 31,000 tons of carbon dioxide per day. The program aims to replace India's 7.7 billion inefficient bulbs with LEDs. It is expected that the plan will also reduce the electric load by 20,000 megawatts, save energy by 100 billion units, reduce greenhouse gas emissions by 80 million tons per year, and estimate annual electricity savings of 400 billion rupees.
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