Describing the LED (light emitting diode) bulb as a 'Prakash Path' – 'way to light', Modi said that it is much more economical to conserve power than to produce power.
He launched this scheme under the domestic efficient lighting programme in Delhi and a National Programme for LED-based Home and street lighting.
Modi said this initiative was expected to reduce import bills and would save the environment.
LED bulbs have almost 50 times more life than ordinary bulbs and therefore provide both energy and cost savings in the medium term.
PM launched a web-based system to enable consumers in Delhi to register requests for procuring LED bulbs under Domestic Efficient Lighting Programme (DELP).
LED bulbs shall be distributed in a phased manner from March 2015 onwards, an official statement said.
The entire project of installing LED bulbs for domestic and street-lighting in 100 cities is targeted for completion by March 2016.
In Delhi, LED bulbs will be provided to all domestic consumers at an initial payment of Rs 10 each and recovery of Rs 10 each for 12 months from their electricity bill.
Hence, the cost for an LED bulb to domestic consumer will be Rs 130 through this programme due to bulk procurement, compared to the current open market retail price in the range of Rs 350-600 for LED bulbs.
The estimated annual savings for households in Delhi per LED bulb will be Rs 162. The LED bulbs will have a warranty of 3 years.