The distribution of appliances will be done in a phased manner across select retail outlets of oil marketing companies.

Power PSUs-promoted Energy Efficiency Services Ltd (EESL) has signed a Memorandum of Understanding (MoU) with Oil Marketing Companies (OMCs) under the Ministry of Petroleum and Natural Gas for distribution of energy-efficient appliances, the Ministry of Power has said in a statement.

The energy-efficient appliances will be distributed under the Modi government’s flagship Unnat Jeevan by Affordable LEDs and Appliances for All (UJALA) scheme.

According to the agreement, OMCs – Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) –will take up distribution of LED bulbs, LED tubelights and energy-efficient fans from select retail outlets across the country. The distribution of these appliances will be conducted in a phased manner across these select outlets. In the first phase, distribution will commence from Uttar Pradesh and Maharashtra.

As per the MoUs with the OMCs, EESL will make the entire upfront investment for ensuring availability of the products at the outlets and no upfront capital cost will be borne by the OMCs barring manpower and space. The consumer can purchase “high quality” 9W LED bulbs for Rs 70, 20W LED tubelights for Rs 220, and 5-Star rated ceiling fans for Rs 1,200.

“It is worth noting that two important ministries of the Government of India have come together to realise Hon’ble Prime Minister Narendra Modi’s vision of every citizen having access to energy-efficient appliances,” said Piyush Goyal, erstwhile Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines on signing the MOUs. “The marketing network of the three oil marketing companies is unparalleled and this tie-up will only accelerate and scale up the distribution of energy-efficient appliances across the length and breadth of the country.”

Dharmendra Pradhan, former Minister of State (IC) for Petroleum, and Natural Gas, said, “It is the vision of the Government of India to reduce our dependence on import of energy by up to 10%. The petrol pumps owned by the three oil marketing companies can boast of a very high footfall. It is a great opportunity for the two departments to come together and utilise this network for ensuring LED bulbs and tubelights reach every corner of our country.”

He added that that the ecosystem of non-fuel retail business around the retail outlets will not only help drive the non-fuel business but will also lead to customer convenience in their own vicinity.

“The three public sector OMCs together have a vast network of over 54,500 petroleum retail outlets across the country. These outlets not only meet the growing fuelling needs of our rapidly developing nation but also offer a bouquet of allied services like ATMs, service stations, convenience stores and PUC facilities to enhance value and convenience to customers across the urban, highway and rural markets. The unmatched network of these mega petroleum companies will significantly boost the distribution and marketing reach of EESL and extend the availability of energy-efficient products to all corners of India.”

According to the power ministry, over 25.5 crore LED bulbs, more than 30.6 lakh LED tubelights and around 11.5 lakh energy efficient fans have been distributed in the country under UJALA scheme. This is leading to an annual energy savings of over 3,340 crore kWh and resulting in avoidance of over 6,725 MW of peak demand. The estimated cumulative cost reduction in bills of consumers annually, is over Rs 13,346 crore and is leading to reduction of approximately 2.7 crore tonnes of CO₂ every year.