Question : Procurement Programme by EESL

(a) whether Energy Efficiency Services Limited (EESL) has started a bulk procurement programme to increase uptake of energy efficient air conditioners using government funds and if so, the details thereof alongwith the key features of the plan, its successes and failures;

(b) whether such a bulk procurement plan is to be repeated in future and if so, the details thereof;

(c) whether the Bureau of Energy Efficiency (BEE) began standards and labelling programme for air conditioners and if so, the details thereof;

(d) whether the BEE periodically revises its standards by mandating higher level of energy efficiency from manufacturers who shift cost burden on buyers of these appliances and if so, the details thereof;

(e) the details of successes and failures of the standards and labelling programme; and

(f) whether the Government proposes to make energy efficient air conditioners GST exempt to encourage uptake and if so, the details thereof?

Answer given by the minister



(a) : Yes, Sir. Energy Efficiency Services Limited (EESL), a joint venture company of Public Sector Undertakings (PSUs) under the Ministry of Power, Government of India, had done bulk procurement of Super-Efficient Air-Conditioners (SEACs) in two phases in May 2017 and June, 2019. However, no Government fund was utilized for this procurement. So far about 19,500 SEACs have been deployed in Government/Public Sector Undertakings buildings and domestic consumers. Consumers have availed SEACs (20% more efficient than 5 star ACs) at an affordable cost. It may be noted that with the specification of the SEAC, Government e-Marketplace (GeM) has launched a new category of “Green air conditioner” to promote energy efficient and environment friendly air conditioners.

(b) : The procurement plan of EESL is dependent upon its business requirements.

(c) : Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power (MoP) launched the Standards and Labelling program for Room Air Conditioners in the year 2006 initially under Voluntary regime and it was changed over to mandatory regime in the year 2009. Subsequently during the years 2015 and 2018, BEE covered other categories of Air conditioners i.e. (Cassette, Floor Standing, Tower, Ceiling, Corner AC) and Variable speed Air Conditioners, respectively under mandatory regime. During the year 2020, BEE covered the star rating program for Light Commercial Air Conditioners (LCAC) under voluntary regime.

(d) : Yes, Sir. BEE periodically reviews the energy consumption standards / performance benchmarks for appliances/equipment. Based on the market scenario and the technology available, BEE scales up these performance benchmarks with an intent of bringing more energy efficient appliances in the market and by removing less energy efficient/ inefficient appliances.

(e) : Standards & Labelling program is a flagship initiative of MoP for the appliances sector. The star rating program has changed the mind set of end users/ consumers thereby helping them in making an informed choice by comparing the appliances based on their energy performance. Due to increased awareness among consumers towards BEE star label appliances, the list of appliances being covered under the program is increasing gradually. As on June, 2021, 28 appliances have been covered under the ambit of labelling program, out of which 10 are under mandatory regime and 18 are under voluntary regime. There are 589 models registered from 13 vendors in June, 2021.

(f) : No, Sir.


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