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ETVBHARAT
  • 1/10/2025
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Transcript
00:00I think in the next 5,000 years we would never have gone into LED bulbs.
00:06And one of the first decisions on file I took was to eliminate that subsidy.
00:12Then we engaged with all the stakeholders, we found the government was procuring these
00:16six egg bulbs at 310 rupees per bulb, plus taxes, and 310 rupees plus taxes at that time
00:28it came to about 450 or 475 rupees.
00:33We added logistics, transport, distribution cost, marketing cost, reaching it to the last
00:41person it came to some 600-700 rupees a bulb.
00:45Uske baad 100 rupees subsidy se 500-550 rupees mein milta tha.
00:50I still remember my wife furnishing our home in 2012 and putting in LED bulbs at that time
00:57and costing more than a 1000 rupees a bulb.
01:01At that time it was a fashion statement to have LED lighting, with all the soft hues,
01:08different colours, ability to do dim lighting and all of that stuff.
01:17In a period of barely a year Ajay, the cost of 310, not even a year, I think the third
01:24iteration, third or fourth iteration, a 8 watt bulb which we were buying for 310 rupees
01:35was replaced with 12 watt bulbs giving 50% more illumination at 38 rupees per bulb, almost
01:4685% lower cost.
01:50And what did we do?
01:52We started from what was happening before 2014.
01:56A, since there was no more an incentive, there was no more a restriction of 600 rupees, EESL,
02:05Energy Efficiency Services Limited, which was a part of our ministry, started taking
02:12out bids for large quantity of bulbs.
02:15The first was 50 lakhs, second was 1 crore, third was probably 2 or 3 crores, my memory
02:23fails me.
02:24By the third iteration, the world's largest lighting company and I am saying this so that
02:31we didn't compromise on quality ever.
02:34By the third iteration, we got an offer of 38 rupees from Philips, the world's largest
02:42lighting company.
02:43And what did we do?
02:45All our purchases were transparent, there was no rent seeking, there was economies of
02:51scale, we guaranteed payment in 60 days or 30 days.
02:58We guaranteed payment in 30 days into the bank account of the supplier through an RTGS.
03:06Before that, the payment was spread over 5 years because government doesn't trust stakeholders.
03:12Government doesn't trust suppliers.
03:14So they used to have a 5 year payment term.
03:17I remember one of the suppliers, I think probably it was Stromton Greaves, whom I asked, what
03:23should I do to make the price more attractive?
03:26He said, just start paying us the money because when you pay us over 5 years, that many visits
03:33to your office, that much inconvenience, we almost write off half the amount.
03:39Yeh toh kabhi paisa aana hi nahi hai.
03:41You pay us on time.
03:42I said, what will be the value proposition if you pay us, if we pay you in 30 days?
03:48He said, at least 75 to 100 rupees.
03:51Can you imagine?
03:52Yeh toh banker baithe hain yaha pe humare paas.
03:55Cash is king.
03:56Cash is king, yeah.
03:57Just like Singh is king.
04:00We just saw that movie again 5-6 days back, really loved it.
04:08And look at the impact it had on the country.
04:14By 2017 or 18, with zero subsidy, LED had become a part of our normal lexicon, a part
04:25of our normal life.
04:27And I think by 2019, if somebody went out to buy the old incandescent bulbs, you'd probably
04:36not find it in any store.
04:38You'd have to go to an antique store, selling antique equipment to get an incandescent bulb.
04:45And today, LED bulbs would be what, 40-50 rupees in the market?
04:50And the world's largest adoption of LED was started in India.
04:56We were recognized across the world, we were being talked about.