The revised rate also triggers a retrospective recovery.
Shares of DEE Development Engineers rose 4.05 per cent to ₹279.75 on Wednesday. The company disclosed a favourable tariff order for its wholly owned subsidiary, Malwa Power Pvt Ltd (MPPL).
The Punjab State Electricity Regulatory Commission (PSERC), via an order dated March 27, 2026, revised the tariff for MPPL’s 6 MW biomass power plant in Muktsar, Punjab, to ₹5.224 per kWh for an extended 10-year term — up approximately 49 per cent from the interim rate of ₹3.50 per kWh that Punjab State Power Corporation Limited (PSPCL) had been paying. The variable component of the tariff will escalate at 5 per cent annually.
The revised rate also triggers a retrospective recovery. Between May 2025 and February 2026, MPPL supplied roughly 3.37 crore units at the lower interim rate, entitling the company to recover a differential of approximately ₹5.80 crore.
For FY 2026-27, the company projects power generation revenue of ₹24.31 crore from the plant, assuming 85 per cent plant load factor. Combined with its 72,000 MT per annum Biomass Pellet Plant — set to commence operations shortly and projected to generate ₹23.40 crore annually at 50 per cent capacity — MPPL’s total estimated revenue stands at approximately ₹47.71 crore.
However, the company flagged reservations about the fixed cost component of the tariff, which was set at ₹0.97 per kWh. Management contends the PSERC applied outdated CERC regulations from 2012 rather than the 2024 norms, which prescribe O&M charges of ₹54.70 lakh per MW. The company said it is evaluating an appeal before the Appellate Tribunal for Electricity (APTEL) in New Delhi to seek an upward revision.
The plant, originally commissioned in April 2005, had operated under a 20-year PPA that expired in April 2025.
Published on April 1, 2026
