Memorandum Of Understanding (MOU)
SECI financially strengthened under government and RBI agreement
New Delhi . Fears about India’s largest procurer of solar energy being unable to cope with payment defaults have been allayed by its inclusion in a payment security mechanism, according to the latest update from consultancy firm Bridge to India.
The Solar Energy Corporation of India (SECI) will benefit from a new agreement between the Government of India, state governments and the Reserve Bank of India (RBI). This agreemnt protects central government undertakings in the event of a payment default.
Indian solar tenders from National Thermal Power Corporation (NTPC) have consistently brought in tariffs of between INR0.2-0.5/kWh (US$0.3-0.75) lower than those of SECI, partly because, unlike SECI, NTPC has benefitted from this payment security agreement since 2002. Livemint
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