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NEW DELHI : Rajat Kumar Sud, managing director of Energy Efficiency Services Ltd (EESL), has been removed from his post within a year of taking charge of the state-run company that is running the world’s largest domestic lighting programme.

“In terms of clause 7(a) of standard terms and conditions of your offer of appointment, your services from EESL are terminated with immediate effect. In lieu of the notice period, one (01) month, notice pay shall be paid to you," said a 17 September communication from EESL to Sud, reviewed by Mint.

Mint could not ascertain the reason behind Sud’s removal.

EESL, an energy service company set up under the Union power ministry, is a joint venture (JV) of NTPC Ltd, Power Grid Corp. of India Ltd., Power Finance Corporation, and REC Ltd. It is leading India’s ambitious energy efficiency programme, which seeks to reduce carbon emissions as part of the country’s climate change goals and has been valued at 5,000 crore by financial services company Investec as reported by Mint earlier.

Sud, an alumnus of the Indian Institute of Management Ahmedabad, has earlier worked at Sterlite Power and NTPC Ltd.

Queries emailed to the spokespersons of EESL on 18 September and the Union power ministry on 20 September remained unanswered till press time. Sud did not respond to phone calls and a message left on his cellphone on Sunday.

EESL has been allotted the demand aggregation of electric three-wheeler and electric bus component under the 10,000 crore Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme of the government. It is among the earliest entrants in India’s energy efficiency market and is part of the world’s largest electricity smart metering programme through IntelliSmart, its JV with India’s quasi sovereign wealth fund National Investment and Infrastructure Fund (NIIF).

On 14 September, EESL executive vice chairperson Saurabh Kumar had resigned on personal grounds.

As part of the next generation power sector reform push, the government is rolling out the marquee 3.03 trillion power discom reform scheme that has a compulsory smart metering ecosystem component.

“Sud has been asked to leave," said one of the two people mentioned above requesting anonymity.

EESL’s subsidiary Convergence Energy Services Ltd (CESL) is also helping expand the use of light-emitting diode (LED) bulbs.

The government has reduced the price of LED bulbs under the Unnat Jyoti by Affordable Lighting for All scheme. CESL is also running the Gram Ujala scheme, which offers the world’s cheapest LED bulbs in rural areas at 10. A total of 350 million compact fluorescent lamp (CFL) bulbs have been replaced with LED bulbs. The aim is to reach 770 million bulbs. CESL has also called bids to procure 100,000 electric three wheelers with an estimated cost of 3,000 crore in the largest such global tender.

EESL also acquired combined heat and power provider Edina for 493 crore in March 2018 to enter the UK’s £6.4 billion energy efficiency services market.

India has been trying to cement its position as a green energy champion in the run up to the UN Climate Change Conference (COP-26) in Glasgow. The UN’s Intergovernmental Panel on Climate Change (IPCC) has said that extreme weather events will impact lives, livelihoods, and businesses in India and South Asia, and called for immediate steps to mitigate climate change.

India, the biggest emitter of greenhouse gases after the US and China, plans to reduce its carbon footprint by 33-35% from its 2005 levels by 2030, as part of its commitments to the United Nations Framework Convention on Climate Change adopted by 195 countries in Paris in 2015.

India has also committed to have 40% of its total installed power generation capacity from renewables by 2030.

The country has already reached 38.5% of its installed power capacity from non-fossil fuels and this will go up to 66% by 2030, according to the government. Also, India has already reached an emission reduction of 28%.

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