LED News

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With the pro­cure­ment un­der the ‘Un­nat Jy­oti by Af­ford­able LEDs for All’ (UJALA) scheme squeez­ing their cap­tive dis­tri­bu­tion chan­nels, the LED light man­u­fac­tur­ers have asked the gov­ern­ment to go slow on this pro­gramme.

Rep­re­sented by the Elec­tric Lamp and Com­po­nent Man­u­fac­tur­ers As­so­ci­a­tion of In­dia (ELCOMA), play­ers like Havells

In­dia, Surya Roshni and NTL Group, among others, re­cently ap­proached union min­is­ter for power, Piyush Goyal, re­quest­ing the gov­ern­ment to re­duce pro­cure­ment un­der the scheme as it im­pacts their dis­tri­bu­tion chan­nels and ad­versely af­fects their mar­gins.

While the gov­ern­ment’s UJALA scheme of dis­tribut­ing LED bulbs at af­ford­able rates has led to ca­pac­ity ex­pan­sion among LED light man­u­fac­tur­ing com­pa­nies, the in­dus­try is now feel­ing the pinch. With the price dis­par­ity be­tween lights avail­able un­der the scheme and those sold com­mer­cially nar­row­ing, play­ers say that UJALA pro­cure­ment is likely to stress man­u­fac­tur­ing ca­pac­i­ties for the next six to 12 months till the in­dus­try vol­umes grow sig­nif­i­cantly. How­ever, the gov­ern­ment ap­pointed dis­trib­u­tor, En­ergy Ef­fi­ciency Ser­vices (EESL), is in no mood to stop pro­cure­ment and dis­tri­bu­tion un­der the scheme.

Dur­ing the past two years, In­dia’s LED light pro­duc­tion ca­pac­ity has in­creased to about 30 mil­lion pieces a month as against the ini­tial five mil­lion pieces per month. Ca­pac­ity util­i­sa­tion has shot up to around 80-90 per cent. Of the to­tal LEDs pro­duced, the gov­ern­ment’s pro­cure­ment ac­counts for around 50-60 per cent. The price dif­fer­ence be­tween sales through the UJALA scheme and di­rect re­tail and in­sti­tu­tional sales is about 10-12 per cent.

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