Solar Energy Corp Invites Bank Bids for ₹800 Crore in Non-Fund-Based Credit

Solar Energy Corporation of India Limited (SECI) has issued an invitation to Scheduled Commercial Banks to provide quotations for non-fund-based credit facilities totaling up to ₹800 Crore (₹8 Billion). SECI is a Navratna Central Public Sector Enterprise (CPSE) operating under the administrative jurisdiction of the Ministry of New and Renewable Energy (MNRE).

Technical Specifications of the Credit Facility

The procurement of these credit lines is structured to support the company’s expanding operational requirements through specific financial instruments. The parameters for the proposals are as follows:

• Facility Types: Letter of Credit (LC), Bank Guarantee (BG), and Standby Letter of Credit (SBLC).
• Proposed Tenor: One year, with options for renewal based on mutually agreed terms.
• Bank Structure: Facilities may be sanctioned by a single bank or multiple banks, provided the aggregate amount does not exceed ₹800 Crore.
• Fee Structure: SECI stipulates that it will not pay any processing, upfront, documentation, or commitment fees.

Note on Security: If the credit facility is provided on a secured basis, it will be covered by a first pari-passu charge on the company’s book receivables.

Operational Purpose and Regulatory Necessity

The invitation for credit facilities is a strategic response to growing payment obligations and statutory mandates. SECI’s average monthly payments to renewable energy developers for the 2026-27 financial year are estimated at approximately ₹1,750 crore. To date, the company has opened Letters of Credit totaling ₹2,254 crore in favor of developers.

The primary drivers for the additional credit lines include:

1. Working Capital: Meeting short-term requirements for renewable energy operations and providing financial instruments to developers and transmission utilities.
2. Regulatory Compliance: Under the Central Electricity Regulatory Commission (CERC) Trading Licensee Regulations (2020), SECI is required to maintain Letters of Credit equivalent to 1.1 times the average monthly billing for long-term contracts. This regulatory ratio is essential to protect the company’s trading margin of ₹0.07 per unit.

SECI Corporate Financial Profile

As a primary implementing agency for the National Solar Mission, SECI’s commissioned capacity reached approximately 34 GW across solar, wind, and hybrid projects as of May 2026. The company maintains the highest domestic credit ratings of AAA (Stable) from both CARE Ratings and ICRA.

The following table details SECI’s standalone financial performance for the period ending March 31, 2026:

Standalone Financial Performance

Submission Guidelines and Deadlines

Interested Scheduled Commercial Banks are required to submit proposals in accordance with the following criteria:

• Format: Sealed proposals or quotations detailing commission rates and specific terms.
• Submission Deadline: June 26, 2026.
• PORTAL: https://www.seci.co.in/latest-news
• Location: SECI Office, 6th Floor, Plate-B, NBCC Office Block Tower-2, East Kidwai Nagar, New Delhi – 110023.
• Inquiries: Direct technical or procedural queries to singhal.mohit@seci.co.in and akash.sharma176@seci.co.in.

SECI reserves the right to accept or reject any proposal, in whole or in part, without assigning a reason.