SECI Disbursed ₹5.2 Billion to Solar and Wind Power Generators in July 2020
About ₹570 million released against subsidies
The Solar Energy Corporation of India Limited (SECI) paid nearly ₹5.2 billion (~$70.2 million) to developers for the purchase of solar and wind power in July 2020.
This represented about 75% of SECI’s total payments made during the month. According to its statement, SECI disbursed around ₹6.89 billion (~$92.9 million) in total during July.
The government agency also spent about ₹111.3 million (~$1.5 million) on reimbursements towards solar power developers. This included ₹83.5 million (~$1.1 million) in Goods and Services Tax (GST) reimbursements and ₹27.8 million (~$375,045) towards Safeguard Duty (SGD).
Wardha Solar (Maharashtra), Azure Power India, Clean Sustainable Energy Private Limited, Parampujya Solar Energy were some of the companies that received the largest amounts in refund towards GST and safeguard duty claims.
In terms of subsidies, SECI released about ₹570 million (~$7.7 million). It paid ₹10.5 million (~$141,654) towards subsidies under the Central Public Sector Undertaking (CPSU) Program, ₹54.6 million (~$736,599) under the Rooftop Program, and ₹504.9 million (~$6.8 million) in subsidies under the Viability Gap Funding (VGF) program.
Wardha Solar (Maharashtra) ACME Babadham Solar Power, CleanMax Enviro Energy Solutions, and Sukhbir Agro Energy received the most in terms of subsidies during the month.
SECI’s payments in July also included ₹826.1 million (~$11.1 million) in refunds. These refunds comprised central financial assistance (CFA) to the Ministry of New and Renewable Energy (MNRE) for the solar park program, grants, and interest on CFA to the MNRE.
Mercom has previously written that solar developers have been struggling to get their dues, and it has adversely affected their business and the pace of project development in the country.
In June, SECI paid nearly ₹4.4 billion (~$58.8 million) to developers for the purchase of solar and wind power in June 2020. This figure represented about 63% of SECI’s total payments made during the month.
Mercom will conduct a webinar on September 1, 2020, to analyze the latest findings and developments in India’s solar sector over the quarter. Guest speakers from MNRE and SECI will bring in the policy perspective to the discussion and talk about the current environment and strategies for growth. Register for the webinar here.
Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.