Syska LED has won a first-of-its-kind tender floated by Convergence Energy Services Ltd (CESL) to supply LED bulbs for homes in rural India, CESL said on Wednesday.
“Based on an open tender process, we are happy to announce that Syska has won the bid,” Mahua Acharya, MD & CEO, CESL, said in a statement. “I hope to see more private players participate with the Government to work together for the common goal of climate change mitigation.”
A recently founded subsidiary of Energy Efficiency Services Ltd, CESL last month had invited participation from bidders for co-investment on a revenue sharing basis for the inaugural tender under the Gram Ujala programme, which was launched last month. Under the programme, LED lamps will be distributed to homes in rural India at ₹10 to improve energy access and efficiency.
As part of its agreement with Syska, CESL will procure 70 lakh 12-watt lamps and 30 lakh 7-watt lamps from the manufacturer.
“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,” said the statement.
In the tender document, CESL guaranteed a payment of 50 per cent of the last discovered price of the bulbs, giving private companies assurance of a floor price. According to the last discovered prices of these lamps, the 12-watt lamp is priced at ₹75 per bulb and the 7-watt lamp at ₹42 per bulb.