Gram UJALA Scheme

Energy efficiency assumes significance for the nation in the current environment of shortages and 

concerns over climate change. Lighting itself accounts for about 20% of the total electricity consumption 

in India. Hon’ble Prime Minister, on 5th January, 2015 launched the Unnat Jyoti by Affordable LEDs for 

All(UJALA) to provide LED bulbs to domestic consumers with a target to replace 770 million

incandescent bulbs with LED bulbs by March, 2019.

1.2 Energy Efficiency Services Limited (EESL), a government company under the administrative 

control of Ministry of Power, Government of India, has been designated as the implementing agency for 

this programme. For domestic lights, EESL service model enables domestic households to procure LED 

lights at an affordable price of $0.154/- each and the balance on easy instalment from their electricity bill.

1.3 The programme target energy efficiency in 

lighting as it offers enormous opportunity to save 

energy. Most of the lighting needs in domestic and 

public sector are met by conventional lights, 

including highly inefficient incandescent bulbs in 

the domestic sector. LED provides better light 

output than conventional light and are 88% energy 

efficient as compared to incandescent bulbs. Further 

LED lights are 50% energy efficient as compared to 

CFLs.

1.4 Initially 100 cities had been taken up for coverage under the programme. As per the statistics of 

the lighting manufacturers association ELCOMA, about 770 million incandescent bulbs were sold in 2013-

14. If all these are replaced by LEDs, the total reduction in connected load in the country is estimated to 

be 20,000 MW and energy savings of 100 billion kWh every year. The total saving in electricity bills of 

consumers will be USD 6.16 billion every year, considering average tariff of $0.06 per kWh. The total cost 

charged to consumers by EESL is $1.08 (including GST) and is less than savings of 1 year. The bulb will 

function for at least 10-15 years and all savings after one year is of the consumer. 

2. Objectives of the National Programme

The programme is designed to reduce energy consumption in the lighting sector and to promote LED 

based efficient lighting products. The key objectives of the programmes are as follows:

(a) Reduce energy consumption in lighting which helps DISCOMs to manage peak demand

(b) Promote the use of the most efficient lighting technology at affordable rates to domestic consumers 

which benefits them by way of reduced energy bill

(c) Enhance the awareness of consumers about the efficacy of using efficient appliances which in turn 

could change their buying preferences from low first cost based purchases to lifecycle cost.

(d) Increase the demand of LED lights by aggregating requirements across the country and provide an 

impetus to domestic lighting industry through economies of size.

(e) Encourage and support domestic manufacturing of LED bulbs by sustaining demand making it 

consistent with the ‘Make in India’ policy of the Government.

(f) Provide a sustainable service model that obviates the need for upfront capital investment as well as 

additional revenue expenditure to pay for procurement of LED lights. The total cost paid by consumers is 

less than the total savings in electricity bills.