SECI Invites Quotations for INR 1,000 Crore Short-Term Working Capital Credit Facility

The Solar Energy Corporation of India Ltd. (SECI), a Navratna Central Public Sector Undertaking under the administrative control of the Ministry of New and Renewable Energy (MNRE), has invited scheduled commercial banks to submit proposals for a short-term working capital credit facility amounting to INR 1,000 crore. SECI, which has been instrumental in driving India’s renewable energy initiatives, manages solar, wind, and hybrid energy projects.

By September 30, 2024, SECI had facilitated the commissioning of approximately 23 GW of renewable energy capacity and continues to act as an intermediary for power trading. The organisation's monthly payments to developers average INR 1,300 crore and are expected to grow as more projects come online.

SECI holds a strong financial position, supported by its ‘AAA (Stable)’ rating from ICRA for its working capital credit lines. The organisation has demonstrated a commitment to efficient financial operations by releasing nearly 80 percent of its monthly payments to developers ahead of due dates. However, since payments from distribution companies (DISCOMs) are received on the due dates, SECI faces temporary cash flow mismatches that need to be bridged. To address this, SECI plans to establish a fund-based credit facility for one year, with the option of renewal for an additional year by mutual agreement.

The credit facility will also include an option for interchangeable non-fund-based usage, such as bank guarantees or standby letters of credit, though the primary requirement remains fund-based. Banks are expected to offer competitive one-year rates, with drawdowns to be made as required, ranging from seven to thirty days. SECI has outlined its preference for facilities that do not impose upfront, processing, or commitment fees. The facility may be secured by a pari-passu charge on SECI’s book receivables, though unsecured options will also be considered.

Interested banks are invited to submit their sealed quotations by December 15, 2024. The proposals will be opened on the same day at 4 PM, and bidders are encouraged to attend. The banks requiring additional information can contact SECI via email before December 9, 2024. This initiative reflects SECI’s ongoing efforts to maintain financial stability while advancing India’s renewable energy mission.