SECI Gets Rs 1000 Cr Infusion To Expand Investments

The Solar Energy Corporation of India (SECI) has received an infusion of Rs 1000 crores from the Government of India to strengthen its balance sheet and undertake further investments in the renewable sector. As the key nodal agency for the sector, SECI plays an instrumental role in the tendering and award of renewable contracts across the country, and sharing best practices with various state entities. Details are not yet available on the valuation, or premium per share paid for this cash infusion, if any.

The presence of SECI as the intermediary, so to say, between developers and buyers in the form of state discoms has also been crucial to providing sellers a degree of confidence and assurance about their payments. It is obvious to any onlooker when one sees how listed developers buying and selling assets like Azure Power, or Renew Power have started making it a point to highlight their PPA’s with SECI or other central entities like NTPC, rather than state discoms directly. That clearly has a premium in the market today.

In the financial year 2020-21, SECI had awarded 15.9 GW of Solar, Wind and Hybrid project capacity, helped in commissioning of 1733 MW of Solar and Wind Power Projects awarded under earlier tenders, and traded 14.82 billion units of RE power. Additionally SECI awarded 400 MW capacity under Round-the-clock (RTC) RE Power Supply Tender (RTC-1) which was the first-of-its-kind in India and would enable supply of 24×7 RE power with an annual CUF of 80%.

During FY 2020-21 SECI also executed major projects under its own investment and through Project Management consultancy modes. The company commissioned about 159 MW Solar Power Projects in Telangana and Kerala for its clients and also commissioned its own 10 MW Solar Project in Karnataka.

In terms of balance sheet size, SECI had revenue from operations of Rs 5442.88 Cr, a jump of 17.67% over the previous year. Operating profit of ` 215.79 Cr was registered, demonstrating a year-on-year growth of 7.55%. As on 31.03.2021, SECI’s Net Worth stand at ` 873.58 Cr. registering year-on-year growth of 25.56%.

SECI’s Chairman currently is Indu Shekhar Chaturvedi, Secretary, MNRE.