The launch of the National Energy Efficient Fan Programme (NEEFP) last week is expected to reduce the consumer’s electricity bills by about ₹700-730 a year. Speaking to Bloomberg TV India, Bajaj Electricals Chairman Shekhar Bajaj said his company was able to grab 30 per cent of the 1 lakh energy efficiency fans procured by the government. He cautioned about the quality and after-sale services for the fans procured from the unorganised sector. The consumer is getting it cheaper but is not getting the best quality, he said.

Can you take us through the details of the NEEFP? What kind of impact will this have on your company?

Number one, initially they launched the energy efficient light-emitting diode (LED) bulbs scheme through which they brought down the prices substantially from the level of ₹300 a piece to ₹56 in 12-18 months.

Out of the total one lakh fans they had tendered, we were the ones who got 30,000. We have already supplied the 30,000 fans. So we have the experience.

The intention of the government is good and I think it is good idea to go ahead. For the masses, the prices come down and we save energy.

But what has happened is that there is an organised sector and an unorganised sector.

At the organised sector, we are responsible to see to it that certain quality standards are maintained and certain after-sale services are given.

A lamp is a lamp. You sell a lamp and it will be the end of the game. In the case of a fan, it is not so because it requires after-sales service. And, therefore, once they only talk about price and certain 5-star requirements, the unorganised sector will start coming in like in the case of LEDs.

The consumer is getting it cheaper but he is not getting the best quality, which he has a right to get.

Here, the same thing will happen for fans — the unorganised sector will start offering (cheaper goods) and they will obviously give the most inexpensive product. The problem that I am seeing in the case of fans is that as a consumer durable, it is expected to last 10-15 years.

With a guarantee period of two-three years, an ordinary fan will last two-three years and after that the life of the fan would maybe be six months or one year. After that it may last three-five years, while a good fan should last 10-20 years. Consumer durables have to be such a sector that it can continue to give after-sales service. We must clearly state — if you have all these (facilities) set up only then you are eligible to participate in the tender. Otherwise someone will just assemble and supply the equipment — it would end up giving a product which cannot sustain the guarantee which is required. Replacements are required. Do they (unorganised sector) have the set-up to do it? They are only manufacturers. We have to do many other things, too.

Take us through the payment cycle associated with this initiative. Will you be willing to speak to the government about after-sale maintenance expenses as well?

We have already spoken to them. The government understands that particular aspect. But you cannot put so many clauses.

Therefore, the eligibility is something we are going to talk about. Whoever is eligible should have the service set up. As far as payment is concerned, the term of 30 days, which we get, is not an issue. This is where I must compliment the EESL and Power Ministry — at this moment they have zero corruption. This is something very good the government has done. The prices have come down, which is again a good thing.

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