In a surprising move, the Union government has terminated the services of R P Gupta, Chairman and Managing Director of Solar Energy Corporation of India (SECI), with “immediate effect.” The termination order, issued by the Appointments Committee of the Cabinet and dated 10 May 2025, offers no explanation for the sudden decision.
Gupta, a retired Indian Administrative Service officer of the Gujarat cadre, was appointed to lead SECI in June 2023. His tenure was expected to conclude next month. Gupta had previously served as Secretary in the Ministry of Environment, Forest, and Climate Change.
The decision comes amidst mounting controversies and critical operational issues within SECI. As the nodal agency for renewable energy (RE) tenders under the Ministry of New and Renewable Energy (MNRE), SECI has faced intense criticism over its core function of selling and purchasing renewable power.
Approximately 40 gigawatts (GW) of RE projects, tendered by the 4 Renewable Energy Implementation Agencies (REIAs), including SECI, remain without buyers. Of this, SECI alone accounts for nearly 12 GW of projects with pending Power Sale Agreements (PSAs) or Power Purchase Agreements (PPAs).
The issue gained international attention after the United States Attorney, Eastern District of New York, filed a corruption case against Adani Group and Azure Power. The allegations trace back to 2019-2020 when SECI floated tenders for 30 GW of RE projects, many of which failed to secure buyers.
SECI’s internal operations have also been called into question. In October 2024, Business Standard reported that Reliance Power, owned by Anil Ambani, was allowed to participate in a SECI tender despite submitting invalid bank documents. The company listed the State Bank of India (SBI) as guarantor for a bank guarantee, which SBI later refuted. It was found that the email ID used in Reliance Power’s communication was fake. SECI subsequently scrapped the tender process and barred the company.
Further, regulatory setbacks have compounded SECI’s challenges. In January 2025, the Central Electricity Regulatory Commission (CERC) rejected the tariff discovered in SECI’s first grid-scale Battery Energy Storage System (BESS) tender awarded in 2022.
The rejection was based on delays in signing PSAs and PPAs, along with a decline in BESS prices over the past two years. The winning bidder, JSW Energy, has taken legal action to contest CERC’s decision.
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The abrupt removal of R P Gupta from the helm of SECI amid such widespread controversies signals deeper issues within the renewable energy ecosystem. With key projects stalled and regulatory interventions rising, the development casts a shadow on SECI’s credibility and the future pace of India’s renewable energy transition.
The government’s silence on the reasons for Gupta’s exit only adds to the growing uncertainty surrounding SECI’s leadership and operational integrity.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: May 12, 2025, 4:09 PM IST
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