The Indian government has terminated the services of R.P. Gupta, Chairman of SECI, with immediate effect. This decision follows ongoing controversies and a significant backlog within SECI.
SECI Chairman R.P. Gupta: The Government of India has terminated the services of R.P. Gupta, Chairman of the Solar Energy Corporation of India (SECI), with immediate effect. This decision has led to a major administrative reshuffle within SECI. While the order issued on Saturday did not specify a reason for Gupta's dismissal, the move comes amidst escalating controversies within SECI and the broader energy sector.
Senior IAS Officer from Gujarat Cadre
R.P. Gupta is a retired IAS officer from the Gujarat cadre. His last posting was as Secretary in the Ministry of Environment, Forest and Climate Change. Appointed as SECI Chairman in June 2023, his term was due to end next month.
Crisis in SECI and Renewable Energy Projects
Gupta's dismissal raises serious questions about SECI and the renewable energy (RE) sector. SECI is accused of facing a massive backlog in procuring and selling renewable energy. This not only questions SECI's operational efficiency but also highlights the lack of buyers for solar, wind, and battery storage projects in the country.
Earlier, the Ministry of Power reported that 40 gigawatts (GW) of RE projects lacked buyers. SECI alone has 12 GW of projects pending Power Sale Agreements (PSAs) and Power Purchase Agreements (PPAs).
Adani and Azure Power Controversy
A major controversy surrounding SECI involves the Adani Group and Azure Power. These companies faced allegations of corruption on the New York Stock Exchange. SECI had issued a record-high tender of 30 GW, but many of these projects lacked power buyers.
Investigations against Adani and Azure Power alleged that these companies "bribed state governments to obtain favorable PSAs." This led to questioning of SECI's internal workings, making this a recurring news item.
Reliance Power and SECI's Procedural Dispute
Another major controversy arose when Reliance Power submitted invalid bank documents for an SECI tender. Despite this, SECI allowed Reliance Power to participate. After the State Bank of India (SBI) rejected the documents, SECI cancelled the process and banned the company.
CERC's Decision
The Central Electricity Regulatory Commission (CERC) rejected the tariff for Battery Energy Storage Systems (BESS) issued by SECI. CERC cited delays in signing PSAs and PPAs for BESS, leading to price drops. Consequently, the BESS tender issued by SECI also faced controversy.
Questions over SECI's Future
Following R.P. Gupta's dismissal, the future of SECI and the renewable energy sector appears uncertain. This decision not only raises questions about SECI's operational efficiency but also its impact on the development of RE projects.
