Solar Energy Corporation of India (SECI) has 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 can be in the form of a standby letter of credit, letter of credit, or bank guarantee.

The last date to submit the proposal is March 31, 2022.

The non-fund-based credit facility will be for one year with an option to renew the same for a year more with mutual consent. Facility tie-up may be done with multiple banks; however, the total facility will be up to ₹5 billion (~$65.56 million) only.

SECI has been rated as ‘AAA’ Outlook (stable) by the Investment Information and Credit Rating Agency during 2021-22 for its ₹10 billion (~$131.07 million) line of credit.

SECI maintains that there is no outstanding debt as of date, except non-fund-based limits of ₹7.09 billion (~$ 92.93 million) utilized to issue standby letter of credits, letter of credits, and bank guarantees to developers and transmission companies.

The current average monthly payment to developers is in the range of ₹5.7 billion (~$74.74 million), going up to a maximum of ₹6.4 billion (~$83.92). These figures are likely to increase soon due to the commissioning of new projects.

As per the provisions of PPAs signed under various schemes, SECI is obligated to make payments to the developers without any surcharge within 30 days from the due date, which is 30 to 45 days from the receipt of the invoice. Therefore, effectively the payment is released before 60 to 75 days from the date of receipt of the invoice from developers.

However, as per the provisions of the power sale agreement, DISCOMs are required to make payment to SECI without levy of surcharge within 30 days from the due date, which is 30 days from the date of submission of invoices. Thus, DISCOMs can release payment up to 60 days from submitting the invoice.

The Ministry of New and Renewable Energy earlier announced that the government had approved an equity infusion of ₹10 billion (~$ 134.11 million) in 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.