Strong demand, tax cut boost CFL production

Local production of compact fluorescent lamp (CFL) increased by nearly tenfold during the past three years as government policy helped push up demand for energy-efficient bulbs, manufacturers said. They said strong demand coupled with supportive tax measures has acted as catalyst for growing local production. They said domestic CFL production was just 1.2-1.5 million in 2007, which rose to 10 million last year. Kader Khan, a leader of CFL Manufactures Association, said the production of CFL, popularly known as energy saving bulb, has gone up in the country, catching up with the rising demand. In 2008, the demand of CFL jumped to 12.5 million (1.25 crore) in 2008, from just 2.0 million to 2.5 million a year ago. Local production also slightly rose 2.5-3.0 million (25 to 30 lakhs), from about 1.2-1.5 million in 2007. The production of CFL in 2009 was 4.0 to 5.0 million (40 to 50 lakhs) where demand was nearly 20 million (2 crore). In 2010 the local production was 10 million (1.00 crore) against the demand of 15 million in the country. The industry insiders are expecting the production of local CFL to touch to 15 million (1.50 crore) this year against the demand of 18 to 20 million.