DEE Development Engineers Limited Announces Final Tariff Order for Biomass Power Project
DEE Development Engineers Limited announced that the Punjab State Electricity Regulatory Commission (PSERC) has determined the tariff for the 6 MW biomass-based power plant of its wholly-owned subsidiary, Malwa Power Pvt. Ltd. (MPPL), located in Village Gulabewala, Mukatsar, Punjab.The order, dated March 27, 2026, follows directions from the Appellate Tribunal for Electricity (APTEL) and concerns the extended 10-year term of the project beyond its initial 20-year period, which expired on April 26, 2025. The plant was initially commissioned on April 27, 2005, under a Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL).
According to the PSERC order, the applicable tariff for the fiscal year 2025-26 is ₹5.224 per kWh, comprising a Fixed Tariff of ₹0.97/kWh and a Variable Tariff of ₹4.254/kWh with a 5% annual escalation. Previously, the plant was receiving an interim tariff of ₹3.50 per kWh as directed by APTEL. The revised tariff represents an increase of approximately ₹1.724 per kWh compared to the interim rate.
DEE Development Engineers Limited estimates an additional revenue recovery of approximately ₹5.80 Crores till date due to the tariff differential.
The new tariff order is subject to acceptance by both parties before the Hon'ble APTEL. The company is currently evaluating the order and may pursue further action to protect its commercial interests.
Tariff Comparison
| Component | Previous Interim Tariff Per kWh | New Tariff (FY 2025-26) Per kWh | Difference Per kWh |
|---|---|---|---|
| Fixed Cost | - | ₹0.970 | - |
| Variable Cost | - | ₹4.254 | - |
| Applicable Tariff Rate | ₹3.500 | ₹5.224 | ₹1.724 |
The order was received by the company on June 1, 2026.
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