SECI Seeks Quotations for Rs 2,000 Crore Short-Term Working Capital Credit Facility

The Solar Energy Corporation of India (SECI), a Navratna Central Public Sector Undertaking (CPSU) under the Ministry of New and Renewable Energy (MNRE), has issued a request to all scheduled commercial banks seeking quotations for a short-term working capital credit facility of up to Rs 2,000 crores. SECI has been actively implementing large-scale solar, wind, and hybrid energy projects across the country, serving as a vital intermediary for power trading.

SECI has been rated “AAA” with a stable outlook by ICRA, which speaks to its strong financial position and stability. The corporation is obligated under Power Purchase Agreements (PPAs) to release payments to developers on or before the due dates.

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SECI now seeks a fund-based credit facility of up to Rs 1,000 crores for one year, with the option to renew the agreement for an additional year upon mutual consent. The facility may be split between multiple banks, with a total cap of Rs 1,200 crores. The minimum tie-up for each bank will be Rs 50 crores.

The primary credit facility will be fund-based, but banks may offer the option to use it interchangeably with non-fund-based credit facilities, depending on the terms offered.

The credit line will be offered based on one-year rates from the banks. However, the actual drawl of funds will be based on the rates at the time of withdrawal, subject to the maximum spread mentioned in the bid. Existing fund-based limits may be reduced, depending on the requirement for immediate payments.

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SECI has requested interested banks to submit their quotations or proposals by December 16, 2024, in a sealed envelope labeled “Quotation for Short-Term Working Capital Credit Facility.” The bids will be opened on the same day at 4:00 PM, and bidders are invited to attend the opening process.

Currently, SECI’s monthly payments to developers stand at approximately Rs 1,300 crores, a figure expected to rise as new projects continue to be commissioned. To meet its financial obligations, SECI requires a credit facility to manage its short-term working capital needs.

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