The union cabinet on Wednesday approved the renaming of the Solar Energy Corp of India (SECI) as the Renewable Energy Corp of India (RECI), as well as its legal conversion from being a company with charitable objectives to one with mainly commercial purpose.
"The major impact of the decision will be that SECI will become a self-sustaining and self-generating organization, which will 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," a cabinet communique said.
The cabinet gave its approval for applying to the Registrar of Companies for renaming and converting SECI from Section 8 into a Section 3 company under the Companies Act, 2013.
"For a Section 3 company, the object is not limited, and is mainly for commercial activities which will facilitate growth of the company," the CCEA said.
"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, but not commercial activity leading to trade, buying and selling etc. resulting in profit and distribution of dividend," it added.
The cabinet said it 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 in the country.