DEE Development: Revised Tariff for Malwa Power Project

New Delhi, Apr 1 (PTI) DEE Development Engineers Ltd on Wednesday said it has secured a revised tariff of Rs 5.224 per unit from the Punjab State Electricity Regulatory Commission (PSERC) for its 6 MW biomass-based Malwa Power Plant in Muktsar, Punjab.

The order extends plant operations for another 10 years. This follows the expiry of the facility's 20-year power purchase pact with Punjab State Power Corporation Limited (PSPCL) in April 2025, ensuring continued revenue stability for DEE's biomass vertical amid India's push for renewable energy.

The plant, commissioned in 2005, had been operating under an interim tariff of Rs 3.50 per unit during the pendency of the petition. With the issuance of the final order, the revised tariff marks an increase of approximately 49 per cent, with a provision for five per cent annual escalation on the variable component.

"The revision will directly increase FY 2025-“26 PBT by Rs 5.80 crore, arising from recovery of differential revenue for power supplied between May 2025 and February 2026 under the interim arrangement," the company said in a statement.

The Malwa Power Plant generates renewable energy using biomass fuels such as rice husk and agricultural residue, contributing to cleaner energy generation while supporting waste-to-energy utilisation in the region.

Based on the revised tariff and projected operations at 85 per cent Plant Load Factor (PLF), the company estimates annual revenue of Rs 24.31 crore from power generation in 2026-“27, providing improved visibility and stability to its biomass operations.