The Hindu Business Line : Fluorescent lamps tender: Domestic companies may not bite Rlys bait

New Delhi, July 14 If this innovative model gets off the ground, Indian Railways could end up gifting its employees 26 lakh compact fluorescent lamps (CFLs) over the next four years as well as earn carbon revenues.

Since CFL manufacturers can earn carbon credits through clean development mechanism (CDM) by replacing the incandescent lamps of 6.5 lakh households of railway employees with CFLs, the Railways has asked them to bid competitively for supplying CFLs. This, without the Railways paying a penny for them!

The Railways feels that manufacturers can recover their investments by selling the potential carbon credits by registering the energy saving project at the UNFCCC (United Nations Framework Convention on Climate Change).

However, native CFL manufacturers appear sceptical about the scheme. “We cannot risk our capital in a project where revenue streams are ambiguous and extend indefinitely into the future. Unless the financial model is clear, we would refrain from the tender,” a senior executive with a leading CFL manufacturer told Business Line.

Making a CFL lamp would entail upfront costs, while revenues could be deferred and uncertainties over registration of the CDM projects are also a key concern. While domestic CFL manufacturers are unlikely to bid for the project, international players in the CFL space, including Siemens’ lighting arm Osram, however, could be evaluating a possible bid, said an industry expert.

The Railways wants companies to replace incandescent lamps of 60 watts with CFLs of at least 15 watts, 100 watt lamps with CFLs of at least 18 watts in its residential quarters in 2008-2012. The bidder has to supply four CFLs per household and maintain them during the period. In fact, the Railways has asked companies to bid competitively on the basis of carbon credits that they would in turn share with the Railways.

CDM is a Kyoto Protocol process that allows developing countries to earn carbon credits by using technologies that reduce green house gas emissions. These credits can then be sold to developed countries.

Related Stories:
A major boost to Clean Development Mechanism
Improved climate for Kyoto agenda
Carbon credit - thrust for cleaner technologies
Carbon trading fraud

More Stories on : Environment | Railways | Electrical Goods

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page