Nepal to save ₹2,300 cr from deal with EESL

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    2-crore LED bulbs will be supplied to the Himalayan kingdom under the arrangement

    Indian government-run Energy Efficiency Services Ltd (EESL) will supply 2-crore LED bulbs to Nepal to help the mountain nation save energy.

    An EESL official told BusinessLine: “Through 2-crore LED bulbs, Nepal will save nearly 450 MW of peak demand.” In monetary terms, this would mean a saving of ₹2,300 crore for the Nepalese government, as it will not have to invest, the official added.

    According to the annual review by the Nepal Electricity Authority, for the financial year 2015-16, Nepal’s peak demand stood at 1,385.30 MW. This included the power Nepal supplied to India. The country’s peak demand has grown by nearly 8 per cent annually during fiscal 2014 and 2015. An annual 450-MW saving to the Himalayan kingdom will be a big boost, the official said.

    After taking into account taxes and overhead costs, the retail price of an EESL-disbursed bulb comes up to ₹65 a piece in India. This is the same price at which EESL will supply the bulbs to Nepal. The official said, “There is no investment on the part of the Nepal government under this project, and the cost of the bulbs can be recovered from consumers in instalments, similar to the way we do it here.” So there is a total outgo of around ₹160 crore, for the purchase to 2-crore bulbs, he added.

    In a bid to sweeten the deal for Nepal, EESL has also proposed to set up the LED distribution infrastructure network. An online monitoring portal similar to the National Ujala Dashboard will also be set up by EESL free of cost.

    The proposal awaits the nod of the Nepal Cabinet. During discussions, the Nepal government said it wanted all the 2 crore bulbs to be disbursed in 6 months, from the date of assent.

    Source :  Business Line