Solar Energy Corporation of India Ltd. Achieves Navratna Status, Boosting Its Role in India’s Renewable Energy Expansion

The Solar Energy Corporation of India Ltd (SECI), a Central Public Sector Enterprise (CPSE) under the Ministry of New and Renewable Energy, has been granted the prestigious Navratna status by the Ministry of Finance, effective August 30, 2024. This recognition marks a significant milestone for SECI, highlighting its pivotal role in India’s transition towards renewable energy and sustainable development.

A Leading Force in Renewable Energy

Established 13 years ago, SECI has grown into a leading CPSE dedicated to the development and expansion of renewable energy capacity across India. With an impressive cumulative awarded generation capacity of 69.25 gigawatts (GW) and an annual power trading volume exceeding 42 billion units, SECI stands at the forefront of India’s renewable energy sector. As the foremost Renewable Energy Implementing Agency (REIA) of India, SECI is instrumental in driving the country’s climate goals and advancing sustainable development.

The elevation to Navratna status is a testament to SECI’s remarkable achievements and its significant contribution to India’s renewable energy landscape. This status is granted to CPSEs that have demonstrated consistent financial performance, managerial capabilities, and operational efficiency.

SECI’s financial performance in the fiscal year 2023-24 further underscores its growth trajectory. The company reported a consolidated annual turnover of ₹13,118.68 crore, representing a substantial increase of 20.85% over the previous year. Additionally, SECI achieved a Profit After Tax (PAT) of ₹510.92 crore, marking a remarkable growth of 34.89%. These financial results reflect SECI’s robust business model and its capacity to navigate the evolving energy market successfully.

Benefits of Navaratna Status: Enhanced Autonomy

Achieving Navratna status provides SECI with enhanced autonomy in financial and operational matters, enabling the company to make quicker decisions and implement strategies more effectively. This newfound flexibility is expected to accelerate SECI’s growth, allowing for better agility, an expanded geographical presence, and a stronger focus on technological innovation.

With the Navratna classification, SECI is now better positioned to attract investments, forge strategic partnerships, and expand its renewable energy projects across the country. This advancement aligns with the Government of India’s focus on promoting sustainable energy solutions and reducing carbon emissions to combat climate change.

What is Navratna Status?

The government classifies all Public Sector Undertakings (PSUs) into three categories: Maharatna, Navratna, and Miniratna. The 'Navratna' scheme was introduced by the government in 1997.

Criteria for Navratna Status

To qualify for Navratna status, a PSU must meet the following criteria:

1. Company Classification: It should be a Miniratna-I, Schedule 'A' company.

2. Performance Ratings: The company must have received an 'excellent' or 'very good' rating in its Memorandum of Understanding (MoU) for at least three out of the last five years.

3. Composite Score: It should have a composite score of at least 60 based on six different performance indicators.

4. Financial Performance: The PSU must have:

• A net profit of over ₹5,000 crore for three consecutive years.

• An average annual turnover of at least ₹25,000 crore over three years, or

• An average annual net worth of more than ₹15,000 crore over three years.