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Submitted by Nachiket Mor on
Dear Ms.Ahmad, This is a wonderful effort by the Government of Bangladesh. And, while I agree with Mr. Basu that maybe the product should have been priced, I am not entirely sure what the point of subsidised pricing would have been. Either it is entirely free or it is priced at market. To me personally the market price idea is much more appealing because (a) it allows for unlimited scale; (b) it requires the government to figure out the proper tradeoffs instead of side-stepping them by giving out free bulbs while somebody else is perhaps keeping their water heater on for the entire day because of some of some other subsidy somewhere else or running their Mercedes Benz car on subsidised diesel supposedly meant for farmers. Of'course even if there are market priced products that do add value (and there indeed are despite all the distortions) there is an additional challenge of getting it out there, demonstrating that value to people and then stocking, selling and servicing the product. An enterprise in Chennai: Rural Energy Network Enterprises is trying to do just that with some success (www.bit.ly/Rural_Durables_Distribution) and is hoping to take this idea to scale in three states over the next twelve months. You may may enjoying reading about this effort as well. Sincerely, Nachiket Mor