Solar Energy Corp to be converted to a commercial entity called RECI

The union cabinet today approved plans to convert Solar Energy Corporation of India (SECI) from into a business entity registered with the Registrar of Companies under the Companies Act, 2013, and rename it as Renewable Energy Corporation of India (RECI).

SECI will thus become a self-sustaining and self-generating organisation, engaged in owning solar power plants generating and selling power and in other segments of solar sector activities, including manufacturing of solar products and materials.

SECI will become RECI after change of its name and will also take up development of all segments of renewable energy namely, geo-thermal, off-shore wind, tidal etc apart from solar energy.

Solar Energy Corporation of India (SECI) was set up on 20 September 2011, as a not-for-profit company under section-8 (Section-25 earlier) of the Companies Act 1956, as an implementation and facilitation institution dedicated to solar energy sector.

SECI, which is under the administrative control of the ministry of new and renewable energy, was established with an overall view to facilitate implementation of the Jawaharlal Nehru National Solar Mission (JNNSM) and achieving the targets set therein.

The corporation has the objective of developing solar technologies and ensuring inclusive solar power development throughout India.

However, 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 transition to section-3 status will enable the new RECI to engage in commercial activities and thereby enter businesses prohibited under the earlier status, facilitating growth of the company. 
 
The enlarged scope of the activities of SECI cover all renewable energy sources will help it to provide a comprehensive and optimised solution for generation of renewable energy integrating various renewable energy sources.

Also, 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.