The Solar Energy Corporation of India Limited (SECI) paid nearly ₹4.4 billion (~$58.8 million) to developers for the purchase of solar and wind power in June 2020.
This represented about 63% of SECI’s total payments made during the month. According to its statement, SECI disbursed around ₹6.97 billion (~$93.1 million) in June.
SECI’s payments also included about ₹119.9 million (~$1.6 million) towards Goods and Services Tax (GST) and Safeguard Duty (SGD) claims. Of this, ₹21.3 million (~$284,406) was reimbursed to solar power developers for GST claims per the Central Electricity Regulatory Commission’s orders, ₹17.8 million (~$237,673) was reimbursed to developers for GST claims under the annuity method, and ₹80.9 million (~$1.1 million) was paid towards safeguard duty reimbursements.
Azure Power India Private Limited, ReNew Solar Power Private Limited, Fermi Solar Private Limited (promoted by Avaada Energy), and Clean Sustainable Energy Private Limited were some of the companies that received the largest reimbursed amounts towards GST and safeguard duty claims.
SECI’s remittances also included ₹1.78 billion (~$23.8 million) in subsidy reimbursements. It paid ₹1.56 billion (~$20.8 million) towards subsidies under the Central Public Sector Undertaking (CPSU) Program (Phase-II), ₹170.6 million (~$2.3 million) under the Rooftop Program, and the ₹48.9 million (~$652,933) in subsidies under the Viability Gap Funding (VGF) program.
Beneficiaries under these subsidy reimbursements include NTPC Limited, Singareni Collieries Company Limited, Maharashtra RESCO Rooftop Solar Private Limited, and Suryam International Private Limited.
In May, SECI disbursed a total of $17.3 million (~₹1.3 billion) to solar and wind developers. It released $12.5 million (~₹937 million) for the purchase of solar and wind power.
Mercom has previously written about how solar developers have been struggling to get due payments. This has adversely affected their business and the pace of project development in the country.
In March 2020, the MNRE issued a circular stating that GST and safeguard duty compensation to solar project developers should be paid within 60 days. The circular by MNRE was addressed to SECI and NTPC, and it warned that if the compensation is not made within two months, a late payment surcharge may be imposed, or the payment can be made on an annual basis spread throughout the power purchase agreement tenure.
SECI has a good credit history with a track record of making timely payments to developers. It has been the implementing agency for several programs under the National Solar Mission. However, recently, the Indian Renewable Energy Development Agency Limited (IREDA) replaced SECI as the implementing agency for solar projects with VGF by CPSUs for self-use or use by government entities.
Nithin 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.