Today renewable energy today is one of the most promising fields in energy efficiency, low carbon emissions and employment opportunities for a growing economy like India. The Jawaharlal Nehru National Solar Mission (JNNSM) implemented in 2009 was a technology boon for an increasing population which required a surge in energy requirements, and seen as an environmental motive from the government. Viewed as a ‘do-good’ sector in all these respects, the Solar Mission heralded this change in an inspiring manner and received admiration from leaders, scientists, researchers, environmentalists and activists nationwide. 

 

But, amidst the silver lining there seems to be a black cloud which spells bad news for the country’s development. In a world like India where renewable energy is viewed as a brilliant and much needed technology, little is done in checking authenticity of reports/project allocation and bad market practice. The Centre for Science & Environment (CSE), one of India’s largest NGO’s based in Delhi led a study in this power sector of the first phase project allocation which was rumoured to be quite unfair. CSE’s study unearthed an unpleasant side of things. In 2010 as a bid to win the bigger piece of the cake of the fist phase of the mission which aimed to commission 1000 MW of solar power, Lanco Infratech managed to bag 40% of solar projects using front companies as bidders.

 

Using different companies hidden behind the Lanco tag and top individuals having a huge stake in Lanco, upto seven companies siphoned off majority of the projects. This malpractice left other not only empty handed but ensured Lanco 100% revenue generation of 13,000 crore out of the 35,000 crore project.

When the results of the bidding were announced, it was found that most of the projects were given to companies unheard of and absent from the energy industry. Lanco presented itself under various brands together buying the projects at an economy price and have a greater share of the first phase of the mission – walking away with a total of 10 solar projects which left top renewable brands baffled.

 

What is even more suspicious is that the MNRE refused to disclose the names of the bidders who won which lead many to believe the non-transparency and mismanagement of this process. Despite illegalities in the bidding process, MNRE and power purchaser NTPC Vidyut Vyapar Nagam did not bother checking this.

What is worrying is that at a time when sustainable development in the energy sector is most critical, dirty deeds are still played out and gotten away with. If we choose to be a nation that inculcates the right energy practices we can pave the way for future generations to reap the harvest and be a nation of great example. Otherwise we face a major energy crisis.  

 

1. What is the Jawaharlal Nehru National Solar Mission?

JNNSM was set up by the Ministry of Renewable Ministry presided by Farooq Abdullah in 2008 as step towards transitioning the country to invest in solar energy which of today has the biggest presence in India. The mission aims to set up 22,000 MW of solar energy in the country by 2022 and is in 3 phases, 2009-2013, 2013-2017 and 2017-2022.

 

2. What kind of work does Centre for Science & Environment do and explain their role in this matter?

CSE is an environment NGO based in New Delhi headed by Sunita Narain and works in environmental issues, research and development and lobbies for the right implementation of sustainable practice in India. In this survey that was done they found Lanco holding more than 1 project which goes against the MNRE policy of one-company-one-project in the JNNSM. They also tracked down various scams used by Lanco to acquire this illegally leaving other energy industries out of the picture and getting a huge revenue cut

 

3. Who is Vidyut Nagam and how is he involved with JNNMS?

Vidyut Nagar from National Solar Power Corporation (NTPC) is the person suspected to be involved in the solar scam, he is responsible for contracting, buying and selling of solar power under the Ministry of Power.