Finance Minister Nirmala Sitharaman in her budget speech for fiscal 2021-22 announced the capital augmentation of Solar Energy Corporation of India Limited (SECI) and Indian Renewable Energy Development Agency Limited (IREDA).
In her speech, the FM said that “to give a further boost to the non-conventional energy sector, I propose to provide an additional capital infusion of Rs 1000 crore to SECI and Rs 1500 crore to Indian Renewable Energy Development Agency (IREDA). 1
SECI, a public sector undertaking working as the ‘Implementing Agency’ of the Ministry, plans and calls for tenders for the development of RE projects on a pan-India basis. SECI procures RE power at a central level, thereby reducing the off-taker risk of RE developers and sells it to Discoms. So far, the agency’s efforts have resulted in flow of investments from all over the world into the country’s RE sector, and in a rapid decline in RE tariffs, which has led to large-scale uptake of RE in the country.
The cumulative capacity installed in the country as on December 31, 2020, is 91,000 MW and a further 50,000 MW of the projects are under implementation of which SECI’s share is 54 percent.
To give a further boost to the RE sector, an additional capital infusion of Rs 1000 crore to SECI has been provided which will enable SECI to float 15 GW of tenders on yearly basis.