DEE Development Engineers Limited Secures Tariff Order for Biomass Power Plant, Anticipates ₹5.80 Crore Revenue Recovery
DEE Development Engineers Limited announced that the Punjab State Electricity Regulatory Commission (PSERC) has determined a tariff for the 6 MW biomass-based power plant of its wholly owned subsidiary, M/s Malwa Power Pvt. Ltd. (MPPL), located in Punjab. The order, dated March 27, 2026, covers an extended term of 10 years following the expiry of the initial 20-year Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL), which concluded April 26, 2025.During the pendency of the petition, MPPL received an interim tariff of ₹3.50 per kWh. The Commission’s new tariff is ₹5.224 per kWh, representing an enhancement of approximately 49.3%. The tariff will increase annually by 5% on the variable component.
Applicable Tariff Details
| Component | Previous Interim Tariff PerKWH | New Tariff (FY 2025-26) Per KWH | Difference PerKWH |
|---|---|---|---|
| Fixed Cost (O&M + Interest on WC) | - | ₹0.970 | - |
| Variable Cost | - | ₹4.254 | - |
| Applicable Tariff Rate | ₹3.500 | ₹5.224 | ₹1.724 |
The company is entitled to recover approximately ₹5.80 Crores for electricity supplied between May 2025 and February 2026 at the interim rate.
Based on the revised tariff and projected plant operations at 85% Plant Load Factor (PLF), DEE Development Engineers Limited anticipates annual power generation revenue of ₹24.31 Crores from the MPPL plant for Fiscal Year 2026-27.
MPPL’s newly constructed Biomass Pellet Plant, with an installed capacity of 72,000 MT per annum, is expected to commence commercial operations shortly. This plant converts agricultural residue into biomass pellets, with a projected annual revenue of approximately ₹23.40 Crores at 50% operating capacity.
The combined estimated revenue from MPPL’s power generation and pellet plant operations for FY 2026-27 is approximately ₹47.71 Crores.
While the company acknowledges the order, management noted that the fixed cost component and variable cost benchmarking methodology may be on the lower side, potentially due to reliance on older regulations. DEE Development Engineers Limited is considering filing an appeal with the Appellate Tribunal for Electricity (APTEL) to seek an upward revision of the tariff, referencing current CERC regulations.
Mr. KL Bansal, Chairman and Managing Director of Dee Development, commented on the order, expressing confidence in the company’s renewable energy initiatives and commitment to stakeholders.
DEE Development Engineers Limited is an engineering company with interests in piping systems manufacturing and renewable energy, with a focus on biomass power plants in Punjab.
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