SECI’s Payment to Solar and Wind Developers Down 10% to ₹8.04 Billion in October

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The Solar Energy Corporation of India (SECI) released ₹8.04 billion (~$98.6 million) in payments to solar and wind power generators for the power purchased in October 2022.

The amount is nearly 10% lower than the payments made in September. The agency had released ₹8.93 billion (~$108.61 million) against power purchases.

The disbursal in October accounted for nearly 88% of the total amount paid by the nodal agency during the month.

The agency disbursed a total of ₹9.15 billion (~$112.18 million), including payments towards solar and wind power purchases, reimbursements to developers, and duties in October.

Sprng Renewable Energy, Azure Power Forty-Three, Ayana Renewable Power One, Eden Renewables, and Adani Hybrid Energy Jaisalmer One were the main recipients of the payments in October.

In a recent statement, the Ministry of Power stated that the state-owned power distribution companies (DISCOMs) cleared outstanding dues worth ₹246.8 billion (~$3.04 billion) in just four installments.

The outstanding dues to suppliers, including generating companies, transmission companies, and traders, stood at ₹1.13 trillion (~$13.9 billion) in November 2022, a drop of 17% compared with June. The Ministry added that the DISCOMs also cleared nearly ₹1.68 trillion (~$20.68 billion) of their current dues in the past five months.

Against this backdrop, the payments made by SECI to solar and wind developers have come as an added relief to renewable generators, who have been feeling the brunt of the previously delayed payments from DISCOMs.

The agency also released ₹752.22 million (~$9.2 million) as a subsidy under the viability gap funding program.

SECI reimbursed ₹10.08 million (~$123,770) as a refund of the central financial assistance (CFA) to the Ministry of New and Renewable Energy.

The nodal agency reimbursed ₹114.45 million (~$1.4 million) to solar power developers against goods and services tax (GST) and safeguard duty claims under the annuity method.

It paid ₹18.28 million (~$224,456) as open access charges and released ₹67.69 million (~$831,152) as a subsidy refund under the rooftop solar program.

Also, the agency disbursed ₹11.71 million (~$143,785) as payment toward transmission charges and ₹61.75 million (~$758,216) as payments to contractors and service providers.

In March this year, SECI had issued a request for proposals seeking quotations for a short-term working capital credit facility of up to ₹5 billion (~$65.56 million). The credit facility could be in the form of a standby letter of credit, letter of credit, or bank guarantee.