India’s SECI guarding against solar payment delays through special fund

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
central government is providing INR5 billion (US$74.4 million). Credit: SECI

Solar Energy Corporation of India Limited (SECI) is to introduce a payment security mechanism to support its Viability Gap Funding (VGF) for solar projects.

VGF funding has been an option for solar project developers bidding for capacity in SECI tenders under the National Solar Mission (NSM).

It is offered for capacities of 750MW, 2GW and 5GW in batches I, III and IV respectively of the NSM phase II. It also applies to a scheme known as solarisation of the Indo-Pakistan border, a 50MW high visibility project scheme, and any other VGF schemes from central government.

Now SECI is setting up a ‘Payment Security Fund’, for which central government is providing INR5 billion (US$74.4 million), to ensure timely payments to solar developers from distribution companies (Discoms), state utilities and bulk consumers.

Security will be provided through letters of credit or bank guarantees for long-term open access, transmission charges as well as various other measures to help payments come in on schedule.

The current estimated requirement for VGF funding is roughly INR15 billion once all capacity has been commissioned.

Read Next

January 21, 2022
India is at risk of a supply and demand mismatch for solar equipment if domestic PV manufacturers are unable to meet the quantity and quality required by project developers, Fitch Solutions has warned.
January 13, 2022
Reliance Industries has signed a Memorandum of Understanding (MoU) with the government of Gujarat for a total investment of INR5.955 lakh crore (US$80 billion) over 10-15 years to establish 100GW of renewables and set up green technology manufacturing facilities in the state.
January 10, 2022
Indian renewables company ReNew Energy Global Plc’s wholly owned subsidiary India Clean Energy Holdings has raised US$400 million through a green bond sale that will be used to support the company’s growth strategy and “refinance existing high-cost debt”.
January 10, 2022
Indian conglomerate Adani Group has set up a new subsidiary focused on areas including manufacturing solar equipment and producing green hydrogen.
January 7, 2022
India’s state-owned National Hydroelectric Power Corporation (NHPC) has signed an agreement with the Green Energy Development Corporation of Odisha Ltd (GEDCOL) for the development of 500MW of floating solar projects in the eastern state of Odisha.
January 6, 2022
Renewables developer Hero Future Energies (HFE) has formed a partnership with electrolyser manufacturer Ohmium International to develop and build 1GW of green hydrogen plants across India, the UK and Europe.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal