Application of solar energy for pumping in a remote rural area is presented. The power converter is a high performance AC drive, which supplies a 3-phase induction motor driving the mono block pump. Key issues related 40 reliable and efficient tapping of solar energy by maximum power point tracking (MPPT) and optimizing motor performance through energy efficient mode of operation are discussed. Intelligent power module (IPM) is used as the power switching element which offers higher reliability and requires lesser interface circuitry compared to other power switching devices. The real time control algorithm is based on space vector PWM, realized using high speed digital controller based on TMS320F206 digital signal processor (DSP). The test results of the proto-model drive are presented.