For A Sunlit World

RUMSL’s success saga is a result of careful project structuring, independent of subsidy

- Anil Swarup

India has committed to ambitious targets before the world in the context of renewable energy. Many felt that India was punching far above its weight. Solar projects set up in India have been largely on account of the creditable efforts of Central Public Sector Undertakings (CPSUs) — Solar Energy Corporation of India (SECI) and NTPC. In setting up solar projects, the role of states has been largely limited to arranging the land. The same structure was conceptualized for a 750 MW solar project planned in Rewa in eastern Madhya Pradesh. Rewa Ultra Mega Solar Ltd (RUMSL) was set up as a 50:50 joint venture of SECI and MP government organizations with a rather limited mandate.

The prevailing solar tariffs at that time were over Rs 5/ unit. The Central Government used to offer Viability Gap Funding (VGF) so that distribution company (DISCOMs) could procure solar power at Rs 5/unit. Bidding used to be on VGF and the developer seeking the minimum VGF was awarded the project.

It is in this setting that Manu Srivastava, 1991 batch IAS officer, stepped in as Principal Secretary of Renewable Energy Department in GOMP. Part of his responsibility was to form and head RUMSL. As an electrical engineer from IIT-Delhi, Manu had spent the last eight years in the energy sector — five in natural gas and three in electricity.