State-run Solar Energy Corp. of India (SECI), formed in 2011 with charitable objectives, will be converted into a growth-oriented commercial company that will generate and sell solar power and develop other sources of renewable energy, the Union cabinet said Wednesday.
With an eye on expanding India’s renewable energy sector and streamlining it, the cabinet also approved renaming SECI as Renewable Energy Corp. of India (RECI).
The move will result in the company becoming a self-sustaining and self-generating organization with its own solar power plants that will generate and sell power. It will also lead to the company expanding activities in other segments of solar power, such as manufacturing of solar products and materials.
The decision to convert SECI from a Section 8 company to a Section 3 one under the Companies Act, 2013, was taken by the cabinet led by Prime Minister Narendra Modi at a meeting on Wednesday.
Section 8 provides for creation of companies with charitable objectives, prohibiting commercial activity and business growth.
In comparison, Section 3 provides for companies mainly for commercial activities that will help the company grow.