India Now - page 34

light bulbs. “The difference in the cost
will be covered by the sale of Certi-
fied Emission Rights under the Clean
Development Mechanism of the Kyoto
Protocol,” explains Paragaonkar. How-
ever, the CFL segment is facing several
challenges now. Competition from the
more energy efficient LED lamps and
the environmental threat associated
with the disposal of CFL lamps are the
two major constraints, while the expect-
ed reduction in the cost of LED lamps
will further strain the industry.
The entry of LED lighting has
changed the domestic manufacturing
scenario, says Sujan, as the industry
is now importing LED components
and finished goods. “India does not
have the requisite technology on LED
currently, and therefore, depends on
imported technology,” he explains.
Major players in the LED space are
working hard on their LED R&D and
strategy and Sujan is confident that
“this is going to change the scenario.”
The government too is trying to turn
around the over-reliance on LED
imports with policies to encourage both
foreign and domestic manufacturers
to establish LED fabs under the Modi-
fied Special Incentive Package Scheme
(MSIPS) to provide cash grants of up
to 20 per cent of the cost of project to
companies that set up a semiconduc-
tor fab in India subject to a minimum
initial investment of approximately
US$ 50 million. Another incentive is
the Preferred Market Access Policy of
the Government of India, under which
it provides 50 per cent of the tendered
quantity of LED products procured
by the government to companies that
do at least 50 per cent value addition
through manufacturing in India. To
further reduce the reliance on LED
imports, a total of US$ 2.5 billion has
GE and OSRAM are primarily focussed
on the LED market. The different
light options available in India include
lamps comprising GLS, FTL, CFL and
other lamps, luminaires including high
mast, and accessories, components and
control gears. According to ELCOMA,
the market size of each segment in
2013 was
5,011 crore,
5,597 crore
1,071 crore respectively. The total
light market, excluding LED, in 2013
was valued at
11.679 crore, while LED
accounted for
1,825 crore. The total
value of the lighting industry in the
year under consideration was
LED Leads the Race
“CFL is history now,” remarks Sujan,
explaining the contours of the chang-
ing lighting industry and attributes
this decline to the entry of LED lights.
In 2014, with targetted initiatives and
major promotion, the industry reached
more than 500 million pieces of CFL
as against 20 million pieces in 2005.
India has a CFL manufacturing capac-
ity of more than 1 billion pieces. “But
after the introduction of LED and the
government’s plans to replace all light-
ing points with LED, the scenario will
change in next two to three years,” adds
Sujan. Currently, CFLs constitute about
17 per cent of the lighting industry in
The Government of India as well as
industry association ELCOMA have
actively promoted the usage of CFL
lamps over incandescent lamps as they
are more energy efficient. The share
of CFLs in the lighting industry in the
country grew gradually as their prices
fell with increasing supply. Consumers
also became more energy conscious
with rising levels of awareness. In this
context, the Government of India’s
Bachat Lamp Yojana aimed at reducing
the cost of CFLs sold to end users and
promoting CFL usage in India is worth
mentioning here. Executed through
the Bureau of Energy Efficiency (BEE),
the programme’s objective is to pro-
vide CFLs at the cost of incandescent
“Indian lighting
industry is at par
with the global
growing number of
R&D bases being
set up by MNCs is a
Aniket Pargaonkar
Project Manager, ValueNotes
“CFL is history
now...with the
government’s plan
to replace all lighting
points with LED, the
scenario will change
in the next two-three
Shyam Sujan
Secretary General, ELCOMA
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