The Solar Energy Corporation of India (SECI) paid around ₹4.91 billion (~$66 million) to solar and wind developers for the power it purchased in May 2021, according to the data released by the nodal agency. These disbursements accounted for 94% of the total amount disbursed by the agency during the month.
The nodal agency’s total disbursement for the month stood at ₹5.23 billion (~$70.49 million) towards the purchase of solar and wind power, subsidies, reimbursements to developers, and duties and tax reimbursements, among other expenses for the month.
The nodal agency had paid nearly the same amount in April 2021 for the power procured from solar and wind generators.
The payments made by SECI has brought a big relief to renewable generators, who have been reeling under the pressure of unpaid bills by the state distribution companies (DISCOMs) for a while now. While the bills have been piling up for a very long time, the ailing financial health of DISCOMs has made it more difficult for renewable developers to carry on with their work.
As of April 2021, the DISCOMs owed renewable generators ₹113.34 billion (~$1.56 billion), excluding disputed amounts in overdue payments across 200 pending invoices.
SB Energy One, Wardha Solar (Maharashtra), and Clean Solar (Bhadla) were the main beneficiaries of the payments disbursed by SECI in May 2021.
SECI released around ₹27.86 million (~$375,499) under the viability gap funding in May 2021.
The agency released around ₹39.81 million (~$536,562) in subsidies for the rooftop program. Fourth Partner Energy, Harsha Solar Abacus, and Sure Energy Systems were the main beneficiaries of the payments made by SECI under the rooftop segment.
Also, SECI disbursed ₹80.92 million (~$1.1 million) as payments to contractors and service providers.
The nodal agency paid another ₹33 million (~$444,776) in transmission charges.
The agency also released ₹72.66 million (~$979,316) in reimbursements to solar power developers for safeguard duty, and goods and services tax (GST) claims per annuity method.
In the recent past, there have been many cases where SECI has been directed to reimburse solar developers for the additional cost incurred due to the imposition of safeguard duty and GST. In one such case, SECI was directed by the Central Electricity Regulatory Commission to compensate Clean Solar Power (Bhadla), a subsidiary of Hero Solar Energy, for the additional expense incurred due to the imposition of safeguard duty under the ‘Change in Law’ clause.
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.