Maarg Manthan · Topic 12.5

UJALA Scheme (LED Bulb Distribution)

Current Affairs & Government Schemes › Energy and Renewable Energy Schemes · Topic 12.5

UJALA, short for Unnat Jyoti by Affordable LEDs for All, is a Ministry of Power programme launched by the Prime Minister on 5 January 2015 to give households high quality LED bulbs at low prices and so cut electricity use. Energy Efficiency Services Limited, a joint venture of four public sector power companies, buys LEDs in bulk, which brought the price per bulb down from about Rs 300 to below Rs 50. By January 2025 about 36.9 crore LED bulbs had been distributed, with reported savings of about Rs 19,000 crore a year. The programme also covers LED tube lights, energy efficient fans and street lights.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · Energy and Renewable Energy Schemes

At a Glance

Launched 5 January 2015
Ministry Power
Agency Energy Efficiency Services Limited, EESL
Full form Unnat Jyoti by Affordable LEDs for All
Bulbs distributed About 36.9 crore by January 2025, as reported
Exam link UPSC Prelims, Current Affairs and Government Schemes: Energy and Renewable Energy Schemes

Where Does It Fit?

This topic is about saving electricity rather than producing it. It sits in the macro on energy because cutting demand through efficiency works hand in hand with solar and other supply schemes. Previous topic: National Green Hydrogen Mission. Next topic: Saubhagya Scheme (Rural Electrification).

How Does the UJALA Scheme Work?

Feature	Details
Launch	5 January 2015 by the Prime Minister, as an expansion of the earlier Domestic Efficient Lighting Programme of 2014
Ministry and agency	Ministry of Power, with Energy Efficiency Services Limited as implementer. EESL is a joint venture of NTPC, Power Finance Corporation, REC and POWERGRID
Model	EESL buys LEDs in huge volumes, which lowers cost. Distribution companies sell bulbs to consumers at a fixed price, with the option of paying in instalments through the electricity bill
Price effect	The price of a 9 watt LED bulb fell from about Rs 300 or more to a little over Rs 40 to Rs 50 in bulk tenders, as reported
Products	LED bulbs, LED tube lights and energy efficient fans were sold under the programme
Scale	About 36.9 crore LED bulbs distributed as of January 2025, as reported in the Ministry of Power review

What Are the Benefits and Linked Programmes?

Energy savings: an LED uses nearly 85 percent less power than an incandescent bulb and about half the power of a compact fluorescent lamp
Annual savings: the Ministry reports savings of about 48 billion kilowatt hours a year and about Rs 19,000 crore of consumer bill savings, with a cut of about 3.9 crore tonnes of carbon dioxide a year. These are reported figures
Peak demand: lower lighting demand in the evening cuts peak load by thousands of megawatts
Street Lighting National Programme: a linked programme that replaces old street lights with LEDs in cities and gram panchayats, with over 1.3 crore LED street lights fitted as reported in 2025
Bureau of Energy Efficiency: the Bureau sets the star labelling programme and standards for appliances, and works with EESL on efficiency programmes
Zero upfront cost model: EESL has used a model where the customer pays from the energy bill savings, so no upfront payment is needed
Gram UJALA: a variant sold LED bulbs in villages, at a low price
Link to climate action: lower demand helps the national mission on enhanced energy efficiency, as in National Action Plan on Climate Change (NAPCC)

What Else Should You Remember?

Full form: Unnat Jyoti by Affordable LEDs for All, and the word Ujala also means light in Hindi
Earlier effort: a Domestic Efficient Lighting Programme was launched in 2014 as a pilot, and UJALA was the national scale up
Bulk procurement logic: buying tens of crores of bulbs through open tenders lowers cost, as sellers compete for a very large order
Concentration of distribution: about 84 percent of the bulbs were distributed in the first four years, and distribution has slowed greatly since
Market effect: market prices of LED bulbs also fell, and LED sales rose across the country, which means the scheme changed the whole market and not only its own sales
Current status: as reported, the bulb sale phase has largely tapered off, since LEDs became cheap and widely sold, and EESL now focuses on other work such as street lights and smart meters
EESL’s other work: it has run programmes on smart meters, electric vehicle charging, and efficient pumps and air conditioners
Financial strain on EESL: reports note financial stress for EESL and pending dues from distribution companies for some programmes
Quality concern: some consumers reported early failures of bulbs, so warranty and replacement for three years was built into the scheme
Rebound effect: savings from efficient lighting may be offset when households buy more points or use lights longer
Waste issue: LED bulbs contain electronic parts and need proper e-waste handling at the end of life
Link with power supply: UJALA reduces demand, while supply side schemes add capacity, as in Saubhagya Scheme (Rural Electrification)

Why Does It Matter for the Exam?

Full form and launch: Unnat Jyoti by Affordable LEDs for All and the date 5 January 2015
Implementer: EESL and its four promoter companies
Numbers: price fall, bulbs distributed and savings
Linked programmes: Street Lighting National Programme and the Bureau of Energy Efficiency labelling
Common errors: giving the Ministry of New and Renewable Energy as the owner, or confusing EESL with the Bureau of Energy Efficiency

As an analytical point, UJALA is a good example of using bulk buying to change a market. The saving is cheap energy that never needs to be generated. The lesson is that a short, well designed procurement push can lock in lasting gains, but the scheme should be followed by quality standards and e-waste rules.

Why Is This Topic Important?

Basics Full form, date, EESL
Model Bulk procurement
Impact Savings and price fall

What Came Next?

The next topic covers the scheme that electrified households that were left out. Next topic: Saubhagya Scheme (Rural Electrification).

Key People and Terms

UJALA Unnat Jyoti by Affordable LEDs for All
EESL Energy Efficiency Services Limited
LED Light emitting diode
BEE Bureau of Energy Efficiency
DELP Domestic Efficient Lighting Programme
SLNP Street Lighting National Programme

Exam Corner

Points to Remember

Launched 5 January 2015; Ministry of Power.
Implementer: EESL.
Bulb price fell from about Rs 300 to under Rs 50.
About 36.9 crore LEDs distributed, as reported.
Also: tube lights, fans, street lights.

Do Not Confuse With

EESL and BEE A company that buys and implements versus a regulator that sets standards
UJALA and SLNP Household lighting versus street lighting
Energy efficiency and renewable energy Saving power versus generating clean power

Memory Hook

Bulk buy, low price, bright homes: Ujala lights the demand curve down.

Mains Angle

Questions ask about energy efficiency as a policy tool. These points give a balanced frame.

Benefits Savings, lower peak demand, emissions
Concerns Quality, e-waste, EESL finances
Way forward Standards, recycling, extend to appliances

A Question You May Face

An original practice question, not a past paper question.

“Explain how the UJALA programme used bulk procurement to promote energy efficiency and assess its impact.”

How to Answer

Aim Cheap LEDs for all.
Method Bulk buying by EESL.
Gains Savings and lower prices.
Way Standards and e-waste rules.

GS Relevance

Prelims: full form, launch, implementing agency, products, savings. GS Paper 3: energy efficiency, conservation, power demand management, environment.

Frequently Asked Questions

What is the UJALA scheme?

UJALA, or Unnat Jyoti by Affordable LEDs for All, is a Ministry of Power programme launched on 5 January 2015 to distribute LED bulbs at low prices through bulk procurement by Energy Efficiency Services Limited. It aims to save electricity, reduce household bills and lower carbon emissions.

Which agency implements UJALA?

Energy Efficiency Services Limited, or EESL, implements UJALA under the Ministry of Power. It is a joint venture of four public sector companies, NTPC, Power Finance Corporation, REC and POWERGRID, and it buys LEDs in huge volumes through tenders so that the price per bulb falls.

How many LED bulbs were distributed under UJALA?

The Ministry of Power reported about 36.9 crore LED bulbs distributed by January 2025, with annual savings of about Rs 19,000 crore for consumers. Most were given in the first four years, and later figures grew only slowly, so the number should be checked on the UJALA dashboard.

How did UJALA reduce the price of LED bulbs?

EESL bought tens of crores of bulbs in open tenders, so suppliers competed for a very large order and offered low prices. The price of a 9 watt LED bulb fell from over Rs 300 to roughly Rs 40 to Rs 50, and market prices across India also dropped.

What is the latest status of UJALA?

As reported, the main bulb distribution phase has largely wound down because LEDs are now cheap and widely available. EESL continues work on street lights, smart meters and other efficiency programmes. Cumulative figures remain published on the UJALA dashboard of the Ministry of Power and EESL.

PYQ Practice — Statement Analysis

1 UJALA was launched in January 2015.

True

The date was 5 January 2015.

2 UJALA is implemented by the Bureau of Energy Efficiency.

False

It is implemented by EESL.

3 EESL is a joint venture of NTPC, PFC, REC and POWERGRID.