The Ministry of New and Renewable Energy (MNRE) has announced that the government has approved an equity infusion of ₹10 billion (~$ 134.11 million) in Solar Energy Corporation of India Limited (SECI). The capital would facilitate the addition of 3.3 GW of renewable energy projects and enable SECI to announce several other innovative tenders for project development.
The Ministry of New and Renewable Energy is working towards achieving the target set by the Government of India to install 175 GW (excluding large hydro) of renewable energy capacity by 2022 and further increase it to 450 GW by 2030.
This equity infusion announcement comes in the heels of the Cabinet Committee on Economic Affairs, approving the equity infusion of ₹15 billion (~$201.27 million) in the Indian Renewable Energy Development Agency (IREDA). The additional equity infusion will help IREDA lend ₹120 billion (~$1.61 billion) to the renewable energy sector, thus facilitating the debt requirement for an additional capacity of approximately 3,500 – 4,000 MW.
The Finance Minister announced that the government would invest ₹10 billion (~$ 134.11 million) in SECI and ₹15 billion (~$201.27 million) in IREDA in Budget 2021. The approvals for the announcements made in 2021 have now been received.
SECI has been an active implementing agency of the ministry to plan and call for tenders for developing renewable projects across the country.
According to MNRE, the additional capital infusion will enable SECI to float 15 GW of tenders annually. The infusion is also likely to attract investment of more than ₹600 billion (~$8.04 billion), generate employment of 45,000 job years, and offset 28.5 million tons of CO2 emissions per year.
The additional capital is also likely to enable SECI to set up innovative projects with an investment of around ₹170 billion (~$2.27 billion).
MNRE stated in November 2021 that India had crossed the 150 GW milestone of installed renewable energy capacity, including hydro. To accelerate renewable energy project development, MNRE issued an order for setting up a Project Development Cell within the ministry. It had asked the Department for Promotion of Industry and Internal Trade to nominate `Invest India’ representatives to participate in the cell. MNRE has also opened an Industry and Investors’ Facilitation Centre, which would work as a focal point to provide information regarding government programs and policies and resolve issues related to renewable energy investors and industry.