Thursday, June 25, 2015

A star PSU is born; Know more about RECI

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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