GIVING a boost to the solar energy
segment, the government on June 24 paved the way for birth of a star
player in the sunrise sector. The move underlined PM Narendra Modi's
focus on green and clean energy.
The Union Cabinet chaired by the Prime
Minister Narendra Modi on June 24 gave its approval to the Solar
Energy Corporation of India (SECI) to apply to the...
Registrar of
Companies for (i) converting it into a Section 3 company under the
Companies Act, 2013 (No,18 of 2013); and (ii) renaming it as the
Renewable Energy Corporation of India (RECI), the government said in
a statement.
After the Cabinet decision, SECI will
become a self-sustaining and self-generating PSU. SECI will also
engage itself in owning solar power plants generating and selling
power and in other segments of solar sector activities, including
manufacturing of solar products and materials and SECI will become
RECI after change of its name and then will take up development of
all segments of renewable energy namely, geo-thermal, off-shore wind,
tidal etc. apart from solar energy.
The section 8 of the Companies Act,
2013 provides for formation of companies with charitable, objects.
Under this provision, the commercial aspect of a business entity and
its growth is completely prohibited. In comparison for a Section 3
company the object is not limited, and is mainly for commercial
activities which will facilitate growth of the company. It
therefore, means that a Section 8 company can only engage in
activities of promotion of commerce, art, science, sports, education,
research, social welfare, religion, charity etc., but not commercial
activity leading to trade, buying and selling etc. resulting in
profit and distribution of dividend.
The Government has also decided to
enlarge the scope of the activities of SECI to cover all renewable
energy sources, with a view to provide a comprehensive and optimized
solution for generation of renewable energy integrating various
renewable energy sources.
The generation profile of solar, wind
and small hydro have complementarity and generating power from these
sources are likely to be more uniform. This will also reduce stress
on transmission and distribution networks, resulting in better grid
management.
SECI has initiated various activities
for setting up of solar power plants as also for the promotion and
commercialization of solar energy technologies, with long term
perspective of assuming the role of a solar power developer.
For the first time, SECI made a profit
of about 12 crore during the last financial year and has become a
net worth positive PSU.
It is also expected to make a profit of
around 300 crore this year.
The change in the registration would
allow SECI to own solar power plants for generating and selling
electricity and take up other commercial activities such as
manufacturing solar products and materials.
Apart from solar power, RECI will take
up development of all segments of renewable energy -- geothermal,
offshore wind, tidal etc.
The government has also decided to
enlarge the scope of the activities of SECI to cover all renewable
energy sources, with a view to providing a comprehensive and
optimized solution for generation of renewable energy by integrating
various sources.
The generation profile of solar, wind
and small hydro have complementarity and generating power from these
sources are likely to be more uniform. This will also reduce stress
on transmission and distribution networks, resulting in better grid
management, the statement said.
SECI has initiated various activities
for setting up of solar power plants as also for the promotion and
commercialization of solar energy technologies, with long term
perspective of assuming the role of a solar power developer.
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