The Union Cabinet on 24 June 2015 approved renaming of Solar Energy Corporation of India (SECI) as Renewable Energy Corporation of India (RECI).
Besides, the Cabinet also gave its nod to the SECI to apply to the Registrar of Companies (ROC) for converting it into a Section 3 company from a Section 8 company under the Companies Act, 2013.
These decisions will benefit SECI in following ways
• SECI will become a self-sustaining and self-generating organization.
• SECI will be able to 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.
• 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.
Difference between Section 3 and Section 8 of the Companies Act, 2013
Section 3 is mainly for those companies having commercial activities for the sake of profits.
In contrast, a company under Section 8 can only engage in charitable activities like promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, etc. and should not have commercial aspect.
SECI was established as a registered company under the Section 25 of the Companies Act, 1956 (now under Section 8 of the Companies Act, 2013) in September 2011 for the promotion and commercialization of solar energy technologies.
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When: 24 June 2015