The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued a corrigendum to revise certain provisions of its earlier order related to the long-term procurement of 4,000 MW of electricity by the Uttar Pradesh Power Corporation Limited (UPPCL). The corrigendum, issued on June 30, 2026, applies to Petition No. 2338 of 2026 and introduces important changes to the bidding framework for the project.
UPPCL is planning to procure 4,000 MW of power through a competitive bidding process on the DEEP Portal. The project will follow the Design, Build, Finance, Own, and Operate (DBFOO) model, with coal supply to be secured under the Central Government’s SHAKTI Policy. The latest order modifies and clarifies parts of the Commission’s earlier decision issued on June 17, 2026, particularly on the treatment of transmission costs, transmission losses, tariff evaluation, and bid security requirements.
One of the key changes relates to Inter-State Transmission System (ISTS) losses. UPERC has clarified that ISTS losses will no longer be included in the Fuel Charge component of the tariff. Instead, developers participating in the bidding process will have to include the financial impact of all transmission losses up to the final delivery point within their quoted Fixed Charge. Bidders will not be allowed to show transmission losses as a separate cost item. The Commission also stated that UPPCL will not provide estimates of these losses, and bidders must independently assess and account for them while preparing their bids.
The corrigendum also revises the formula for determining the lowest bidder (L1). According to the revised approach, the total tariff will be calculated by adding the Fixed Charge, Fuel Charge, and ISTS Charges. However, while ISTS charges will be considered during bid evaluation to determine the final landed cost of power, they will not be included while applying the ceiling limits prescribed for Fixed Charges and Fuel Charges.
UPERC further clarified that the Base Fuel Charge should only include the cost of coal, secondary fuel oil, coal washing, and transportation. For projects located outside Uttar Pradesh, bidders must also include any applicable intra-state transmission charges in addition to the standard ISTS charges.
The Commission has also updated the project timeline. It has specified that the first generating unit must be commissioned within 54 months from the appointed date.
Another important revision concerns bid security requirements. UPERC has clarified that Insurance Surety Bonds (ISBs) can only be used as Bid Security and cannot be accepted as Performance Security. The Commission has directed UPPCL to revise its tender documents accordingly and ensure that they comply with the General Financial Rules, 2017, and the latest guidelines issued by the Ministry of Power.
The corrigendum was signed by UPERC Chairman Arvind Kumar and Member Sanjay Kumar Singh in Lucknow and is expected to provide greater clarity and consistency in the bidding process for the proposed 4,000 MW power procurement project.
