Syska LED wins CESL tender to participate in Gram Ujala LED schemePTI | New Delhi | Updated: 14-04-2021 14:20 IST | Created: 14-04-2021 14:08 IST
''Syska LED has won a uniquely structured tender by public sector entity Convergence Energy Services Limited (CESL) to supply LEDs for homes in rural India based on carbon finance,'' a statement said.
In a first-of-its-kind structure, the CESL had invited the 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.
In this tender, Syska is downside protected through a fixed price offered by CESL; upside from carbon credits is shared in equal proportion between the two parties.
Mahua Acharya, MD, and CEO, CESL, said, "Gram Ujala has been appreciated by the government and rural beneficiaries. Based on an open tender process, we… announce that Syska has won the bid." As part of this agreement, the CESL will be procuring 70 lakh 12-watt LED lamps, and 30 lakh 7-watt lamps.
Both Syska and CESL will share 50 percent 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. The LEDs will be distributed to homes in rural India at a minimal price of Rs 10 each.
The Gram Ujala program was launched by the Minister of State for Power and New and Renewable Energy, RK Singh in March 2021. As of date, distribution is ongoing in Bihar and Uttar Pradesh. The next few states are Gujarat, Andhra Pradesh, and Maharashtra.
The program has been designed 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. Carbon revenues are the only way this program is made sustainable.
Rajesh Uttamchandani, Director, Syska LED stated, ''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." A 100 percent-owned subsidiary of EESL, CESL is a new energy company focused on delivering clean, affordable, and reliable energy.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)