Tuesday 9 January 2018

Subsidized LED Bulb Shortage and Govt. plan to take LED bulb manufacturing to SMEs

Written by Anil Singh

There may be two possible reasons for this subsidized LED Bulb shortage in Uttarakhand. 

Those in Uttarakhand who bought LED bulbs under Government subsidy scheme, are finding it difficult to replace the non-working bulbs within the Warranty period (1 year). The reason is not some petty corruption taking place at the retailers such as Post Offices, etc. The reason is the shortage of LED bulbs. These retailers are not getting any bulbs from the manufacturers. Hence the final consumer is not getting any.

There may be two possible reasons for this LED shortage.

One, the manufacturers who earlier might have received some concessions from the Government, are not willing to manufacture at the earlier price.

Two, there are not adequate number of LED manufacturers willing to sell to the Government.

The Government wants people to believe the second reason. A couple of days ago, we read a news report which informed us about the Uttarakhand Government's plan to encourage SMEs and Self Help Groups manufacture subsidized LED Bulbs.

Whatever be the reason, the reality will not change. If those who bought LED bulbs under subsidy now buy a replacement at market rates, then it will be correct to say that they bought LED bulbs at inflated prices even under subsidy.  If the electricity consumption saving is put aside, then people paid at least four times the ordinary bulb's price for a subsidized LED bulb.

To conclude, let us take a quick look at the proposed to encourage SMEs and Self Help Groups manufacture LED Bulbs. It seems easier said than done.


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