Gram UJALA programme.

Why in news?

• Convergence Energy Services Ltd (CESL)  launched the Gram Ujala programme.
• CESL, a wholly-owned subsidiary of Energy Efficiency Services Ltd (EESL), a public sector company.

About Gram UJALA:

• High quality energy efficient LED bulbs will be given for Rs 10 per piece in certain villages of five states in the first phase of the program.
• In the first phase of this programme, 15 million LED bulbs will be distributed across villages of Aarah (Bihar), Varanasi (Uttar Pradesh), Vijaywada (Andhra Pradesh), Nagpur (Maharashtra), and villages in western Gujarat.
• The programme will be financed entirely through carbon credits and will be the first such programme in India.
• The Gram Ujala programme was launched by Power & New and Renewable Energy.
• Under the programme, 7 watt and 12-watt LED bulbs with three years of warranty will be given to rural consumers on submission of working incandescent bulbs.
• The Gram Ujala programme will be implemented in villages of the five districts only and consumers can exchange a maximum of five LED bulbs.
• These rural households will also have metres installed in their houses to account for usage.

Benefits:

• The programme will have a significant impact on India's climate change action energy savings of 2025 million KWh/year and CO2 reductions of 1.65 million tonnes CO2/year.
• It will also enable better illumination, at an affordable price. This will usher in a better standard of life, financial savings, more economic activity, and better safety for rural citizens.

How is carbon credit used for the project?

• The program is intended to provide more access to the original UJALA programme which could not touch every village because the rural consumers were not able to pay Rs 70 per LED bulb.
• After LEDs are distributed, Carbon credit documentation will be prepared and sent to UN-accredited validators.
• Carbon credit buyers will then be sought through an open process based on initial discussions with the market.
• The balance cost and margin on the LED cost will be recouped through the carbon credits earned.

Prelims Question

Consider the following statements regarding Gram UJALA scheme:
1.It aims to increase the number of LED bulbs in domestic connections.
2.It will be rolled out across all districts of India in the first phase itself.
Which among the above statements is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2 
(d)Neither 1 nor 2

Answer to the Prelims Question