India Now - page 35

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FEBRUARY-MARCH 2015
been injected into two major semicon-
ductor plants, including the ST Micro-
electronics Fab in Gujarat.
For the industry, the current chal-
lenge is to bring LED technology to
India, start production of LED lighting
at a fast speed and provide more afford-
able and good quality LED products in
the country. A TechSci Research report
titled,
India LED Lighting Market Fore-
cast & Opportunities, 2020
, has projected
that the country’s LED lighting market
will register a growth of over 32 per
cent during 2015–20. In the next five
years, the main factors boosting the
market will include declining LED pric-
es, government initiatives to provide
LED lights at subsidised costs and LED
installation projects for streetlights
and the growing awareness among
consumers on account of awareness
programmes by manufacturers and
regulatory bodies. The manufacturing
cost will also witness an incremental
decline every year with increasing
domestic production of LED lamps.
A LED lamp comprises diodes, driv-
ers and a semiconductor chip. Current-
ly, chips are imported from Europe and
USA. The components too are mainly
imported and assembled in the country.
Lighting products are imported from
China, Europe, US and South East
Asia. In 2013-14, imports accounted
for nearly
`
2,000 crore. They grew
at a rate of ~25 per cent from 2012-13
to 2013-14. India is, however, export-
ing lights including CFL and LED. In
2013-14, light exports were around
`
800
crore. In volume terms, exports stood
at around 1.85 crore units. In 2013-
14, the biggest export destination for
Indian companies was USA, followed
by Germany and the UK. Exports have
grown at a rate of ~9 per cent from
2012-13 to 2013-14.
The lighting industry is working on
production of more affordable CFLs
and LEDs and also on increasing con-
sumer awareness through workshops
and exhibitions. There is already a dis-
cernible preference among consumers
for more energy efficient light options.
Conducive Policies
As the western nations have already
switched to the highly energy-efficient,
long lasting and cost-effective LED
lighting, the Government of India’s
policies too are geared towards promot-
ing energy-efficient lighting options
and are conducive for the growth of the
industry. “Several policies and schemes
promoting energy efficient lighting
products have been designed by the
government,” informs Pargaonkar. The
Ministry of New and Renewable Energy
(MNRE) and the Bureau of Energy
Efficiency (BEE) have been driving
initiatives such as distribution of solar
LED lanterns in villages to promote
energy-efficient lighting. Government
efforts to promote energy efficient
lighting include use of LED lamps
for street lighting and architectural
lighting of national monuments. For
instance, the Government of Andhra
Pradesh along with EESL (Energy Effi-
ciency Service Ltd) is introducing a new
scheme called DELP (Demand Side
Management based Efficient Lighting
Programme) under which one can
exchange two incandescent lamps in
usage with two LED bulbs worth
`
400
each, by paying just
`
10 for each. Delhi
plans to replace 500,000 streetlights
with LED bulbs. There are also plans
to install LED bulbs in 100 districts
every year. There is a rather unique
initiative under which the Delhi Gov-
ernment will provide two LED bulbs
to each household at the cost of
`
10 (at
par with the cost of a 60W yellow bulb),
and then add a monthly charge of
`
10
to household power bills for a year to
recoup the subsidy. The central govern-
ment too is providing the industry a
concerted push for the final shift. The
government will replace all streetlights
in the country with LED streetlights—
about 30 million pieces. Under various
government schemes for public distri-
bution, more than 300 million lamps
will be distributed in two years. It will
be mandatory to replace all down lights
with LED down lights in retail outlets.
Pargaonkar feels that the next steps
for the government with regard to pol-
icy inducement could be restructuring
of the tax regime which currently lev-
ies VAT of 14.5 per cent. Reduction in
the VAT and a uniform VAT structure
across all states will increase penetra-
tion of LEDs in existing lighting areas.
Standardisation of manufacturing pro-
cesses and products is another impor-
tant milestone that can be achieved
through mandating BIS technical spec-
Imports by value (2014)
Imports by country in 2014
Exports by value (2014)
Exports to countries
Others
China
70
%
USA
19
%
34
%
18
%
6
%
5
%
3
%
13
%
USA
3
%
Italy
Korea
Source: Department of Commerce
Source: Department of Commerce
2
%
South
Africa
2
%
UAE
2
%
Hong Kong
Saudi Arabia
6
%
5
%
9
%
UK
Others
Germany
France
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