SECI pays Rs 4.91 billion for renewable energy purchase in May 2021

The Solar Energy Corporation of India (SECI), under the umbrella of New and Renewable Energy (MNRE), has paid nearly Rs 4.91 billion to solar and wind developers for the power it purchased in May 2021, according to the data released by the nodal agency. 

These disbursements together account for 94 percent of the total amount disbursed by the agency during the month.

The nodal agency’s total disbursement for the month stands at Rs 5.23 billion towards the purchase of solar and wind power, subsidies, reimbursements to developers, and duties and tax reimbursements, among other expenses for the month.

The nodal agency had paid nearly the same amount in April 2021 for the power procured from solar and wind generators.

The break up as it stands has SECI releasing around Rs 27.86 million under the viability gap funding in May 2021.

The agency has also released around Rs39.81 million in subsidies for the rooftop program. Fourth Partner Energy, Harsha Solar Abacus and Sure Energy Systems were the main beneficiaries of the payments made by SECI under the rooftop segment.

Further, SECI has disbursed Rs80.92 million as payments to contractors and service providers.

The nodal agency has also paid another Rs33 million in transmission charges.

The agency also released Rs72.66 million in reimbursements to solar power developers for safeguard duty, and goods and services tax (GST) claims per annuity method.

In the recent past, there have been many cases where SECI has been directed to reimburse solar developers for the additional cost incurred due to the imposition of safeguard duty and GST. In one such case, SECI was directed by the Central Electricity Regulatory Commission to compensate Clean Solar Power (Bhadla), a subsidiary of Hero Solar Energy, for the additional expense incurred due to the imposition of safeguard duty under the ‘Change in Law’ clause.

The payments made by SECI has been big relief to renewable generators, who have been reeling under the pressure of unpaid bills by the state distribution companies (DISCOMs) for a while now. 

While the bills have been piling up for a very long time, the ailing financial health of DISCOMs has made it more difficult for renewable developers to further their projects.

As of April 2021, the DISCOMs owed renewable energy developers Rs 113.34 billion, excluding disputed amounts in overdue payments across 200 pending invoices.

SB Energy One, Wardha Solar (Maharashtra), and Clean Solar (Bhadla) have been the main beneficiaries of the payments disbursed by SECI in May 2021.

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