SECI’s Disbursement to Solar and Wind Developers Dips Slightly to ₹3.7 Billion in October

The Solar energy Corporation of India (SECI) paid nearly ₹3.7 billion (~$50.2 million) to solar and wind developers in October 2020, which amounted to 48.9% of the total amount disbursed by the agency during the month.

According to the latest data released by the agency, it disbursed nearly ₹7.7 billion (~$104.6 million) in October. The payments saw a slight decline as compared to the previous month. Earlier, Mercom reported that SECI had paid out nearly ₹4.53 billion (~$61.5 million) solar and wind power purchases in September 2020, which amounted to 84% of the payments during the month of September.

Wardha Solar, Green Infra Wind Power, SB Energy One Private Limited, and Green Solar Power Gulbarga Private Limited were among the names who were paid the highest dues.

The nodal implementing agency stated that it disbursed nearly ₹80 million (~$1.08 million) to solar power developers in terms of reimbursements. The amount included ₹39 million (~$529,768) in Goods and Services Tax (GST) and ₹41 million (556,936) toward safeguard duty reimbursements.

Azure Power India Private Limited, Parampujya Solar Energy Private Limited (Adani Group), and Clean Sustainable Energy Private Limited (Avaada Group) were among the companies that received the highest payments in terms of GST and safeguard duty claims.

In terms of subsidies, the government agency disbursed ₹17 million (~$230,925) under the venture gap funding (VGF) program and about ₹10 million (~$135,838) under the rooftop solar program.

As per the released data, the nodal agency released ₹3.03 billion (~$41.16 million) under the central public sector undertaking (CPSU) Program Phase-II, which amounted to 39.1% of the total payments and ₹682 million (~$9.3 million) under the solar park program. SECI also spent ₹57 million (~$774,276) on contractor and service provider payments.

In October, SECI released nearly ₹30 million (~$407,514) as payment for transmission charges and ₹50 million as payment for incentive charges for the financial year (FY) 2019-20.

Recently, Mercom wrote about the financial health of SECI in the face of the rising reimbursements for the additional costs incurred by developers due to the imposition of GST and safeguard duty. The payment security mechanism and the tripartite agreement are shielding SECI’s financial health under the circumstances.