DEE Development Engineers Secures Revised Tariff for Biomass Plant
Filing Summary
DEE Development Engineers Ltd announced a revised tariff for its 6 MW biomass power plant operated by its subsidiary, M/s Malwa Power Pvt. Ltd. The Punjab State Electricity Regulatory Commission set the new tariff at ₹5.224 per kWh, up from the interim rate of ₹3.50 per kWh. This adjustment applies for an extended 10-year term following the expiration of the initial 20-year Power Purchase Agreement. The revised tariff includes a 5% annual escalation on the variable component. The company is entitled to recover approximately ₹5.80 Crores for power supplied at the interim rate.
DEE Development Engineers Ltd has announced a revised tariff determination for its 6 MW biomass power plant operated by its wholly owned subsidiary, M/s Malwa Power Pvt. Ltd. The Punjab State Electricity Regulatory Commission (PSERC) issued an order on March 27, 2026, setting the new tariff at ₹5.224 per kWh for an extended 10-year term. This follows the expiration of the initial 20-year Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL), which ended on April 26, 2025.
The revised tariff represents a significant increase from the interim rate of ₹3.50 per kWh that was previously in effect. The new tariff includes a fixed cost of ₹0.970 per kWh and a variable cost of ₹4.254 per kWh. Additionally, the tariff will be subject to a 5% annual escalation on the variable component. The company is entitled to recover approximately ₹5.80 Crores for the differential amount between the interim and revised tariffs for electricity supplied between May 2025 and February 2026.
The biomass power plant, located in Village Gulabewala, Muktsar, Punjab, was commissioned on April 27, 2005. It initially operated under a PPA dated February 19, 2004. The revised tariff determination is based on the unique operational characteristics of standalone biomass Independent Power Producers (IPPs) compared to co-generation plants. The PSERC’s order considers fair and reasonable benchmarks for tariff determination.
The revised tariff will be implemented for the extended term of 10 years, following the expiration of the initial PPA period. The company projects power generation revenue of approximately ₹24.31 Crores for FY 2026-27, based on an estimated plant load factor of 85%. The maximum possible generation is projected at 6,57,00,000 kWh, with net export to PSPCL estimated at 4,53,20,000 kWh.
M/s Malwa Power Pvt. Ltd. operates the biomass power plant and is responsible for its management and operations. The company is also evaluating legal options to appeal the PSERC’s order, seeking an upward revision of the tariff in line with the Central Electricity Regulatory Commission (CERC) Regulations 2024. The company aims to ensure that the tariff reflects the actual operational cost parameters of the plant.
The revised tariff is a critical development for DEE Development Engineers’ renewable energy portfolio. The company is also set to commence commercial operations of a biomass pellet plant at the same location, with an installed capacity of 72,000 MT per annum. This plant will convert agricultural residue into biomass pellets for supply to thermal power plants, supporting Renewable Purchase Obligation compliance. The estimated revenue from the biomass pellet plant is approximately ₹23.40 Crores per annum at 50% operating capacity.
DEE Development Engineers Ltd is a publicly listed engineering company with interests in piping systems manufacturing and renewable energy. The company’s biomass power initiatives focus on sustainable solutions that convert agricultural residue into reliable, grid-connected green power. Through its subsidiary M/s Malwa Power Pvt. Ltd., DEE Development Engineers contributes to India’s renewable energy transition.