SECI Paid ₹8.13 Billion to Wind and Solar Power Generators in August 2022
The agency disbursed a total of ₹11.13 billion during the month
The Solar Energy Corporation of India (SECI) released ₹8.13 billion (~$98.3 million) in payments to solar and wind power generators for the power purchased in August 2022. The disbursal accounted for nearly 73% of the total amount paid by the nodal agency during the month.
The agency disbursed a total of ₹11.13 billion (~$134.64 million), including payments towards solar and wind power purchases, reimbursements to developers, and duties in August.
In July 2022, SECI disbursed ₹9.54 billion (~$119.6 million) to solar and wind power developers for the renewable energy procured, accounting for 93.4% of the total payments made during the month.
Adani Wind Energy Kutch Three, ReNew Wind Energy (AP2), Sprng Renewable Energy, Adani Hybrid Energy Jaisalmer One, Wardha Solar Maharashtra, Orange Sironj Wind Power, and Azure Power Forty-Three were the main recipients of the payments in August.
Distribution companies (DISCOMs) owed renewable energy generators ₹237.06 billion (~$3 billion) in overdue payments (excluding disputed amounts) at the end of July. The figure marked an increase of nearly 18% compared to ₹200.37 billion (~$2.53 billion) at the end of June 2022.
Earlier this year, the Ministry of Power issued the ‘Late Payment Surcharge and Related Matters Rules, 2022,’ allowing DISCOMs to clear their dues to power generators in 48 monthly installments without paying any late payment surcharge. The move is intended to improve the financial health of DISCOMs. It is expected that the monthly payments by SECI will ease the pressure on renewable developers.
The agency also paid ₹2.29 billion (~$27.8 million) as a subsidy under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. The Rajasthan Horticulture Development Society and the Haryana Renewable Energy Development Agency were the main beneficiaries.
SECI reimbursed ₹244.91 million (~$3 million) to solar power developers against goods and services tax (GST) and safeguard duty claims. It also released ₹105.79 million (~$1.3 million) against GST and safeguard duty claims per the annuity method.
It paid ₹8.87 million (~$107,052) as open access charges and released ₹278.91 million (~$3.4 million) as a refund of encashed bank guarantees.
The agency disbursed ₹30.55 million (~$368,708) as payment toward transmission charges and ₹33.08 million (~$399,243) as payments to contractors and service providers.
In January this year, the Ministry of New and Renewable Energy (MNRE) announced that the government had approved an equity infusion of ₹10 billion (~$134.11 million) in SECI. The capital would facilitate the addition of 3.3 GW of renewable energy projects.