We have a lighting business of Rs 12000 crore, and there are 700 million bulbs in use.There is an association of Electric Lamp and Component Manufacturers called ELCOMA with 68 companies as its members. Most of the lighting bulbs in India are tungsten filament incandescent bulbs or Edison bulbs. As these bulbs consume more electricity, they are dead in the West, in China and in Latin American countries. In India also they are dying. In a phased manner, their production will stop. By 2015, 100-watt bulbs will be phased out. By 2016, 60-watt bulbs will not be produced. By 2017, 40-watt bulbs will go out of production.

Right now, CFL and LED bulbs are being used in high income households.These are costly and India is a price-conscious country. The government is giving a massive push to the phase out of the cheap yellow bulb.It has been decided to illuminate 100 cities by LED bulbs which are 10 times more efficient in terms of energy usage. They last 3-7 years as against a life span of 1000-hours for the Edison bulbs.In Delhi, 5 lac lights will be replaced. The government plans to install LEDs in 100 districts.

In order to popularize the LED bulbs, it has been decided to make available 2 LED bulbs for RS 10 for each household.The subsidy will be recovered by adding a monthly charge of Rs 10 to the power bills for a year.At present a 5-watt LED costs RS 350 to Rs 400 whereas a 60-watt yellow bulb costsRs 10. A large government order will lead to a sharp fall in prices – a fall of 30 to 40 per cent.

Bajaj plans to enter LED business.There will be Star-labeling too by Bureau of Energy Efficiency (BEE).Puducherry replaced 7.5 lac bulbs. AP replaced in Guntur 20 lac bulbs. The price fell to Rs 204 a piece.They propose to procure 30 lac more bulbs leading to a price of Rs 149 a piece.It matches CFL prices.These are wholesale prices which will soon be reflected in retail prices too.

Savings in power bills more than make up the high initial outlay.