The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved the Power Purchase Agreement (PPA) signed between Uttar Pradesh Power Corporation Limited (UPPCL) and M/s MB Power (Madhya Pradesh) Limited (MBPL) for the supply of 300 MW of solar power at a tariff of ₹2.57 per kWh for 25 years.
The Commission approved the PPA dated July 16, 2025, under Section 63 of the Electricity Act, 2003, and adopted the tariff discovered through the competitive bidding process. The procurement is expected to support Uttar Pradesh distribution utilities in meeting their Renewable Purchase Obligations (RPOs) while securing long-term solar power at a competitive cost.
The procurement process was initiated by UPPCL in February 2024 for the purchase of grid-connected solar power through tariff-based competitive bidding. Fastnote Biofuels Private Limited (FBPL) emerged as the successful bidder for 300 MW after quoting ₹2.57 per kWh during the e-Reverse Auction held in January 2025.
Following the auction, UPPCL issued a Letter of Award (LoA) to FBPL on March 26, 2025. The LoA was subsequently amended on April 15, 2025, after the company requested permission to relocate the proposed solar project within Uttar Pradesh.
A key issue during the regulatory proceedings concerned the change in the project entity. FBPL sought to merge with its affiliate, MBPL. Both companies were subsidiaries of Hindustan Thermal Projects Limited (HTPL). UPPCL consented to the proposed arrangement, following which the PPA was executed directly with MBPL.
However, UPERC observed during the proceedings that MBPL did not initially have the required legal standing to execute the PPA because the statutory amalgamation process had not yet received final approval from the competent authority.
To address the issue and avoid delays associated with the conventional National Company Law Tribunal (NCLT) process, the companies proceeded under the fast-track merger mechanism provided under Section 233 of the Companies Act, 2013. The Regional Director (North-West Region), Ministry of Corporate Affairs, sanctioned the scheme of amalgamation on June 22, 2026.
Following the approval, MBPL assumed full responsibility for implementing and fulfilling the obligations under the PPA.
In its final order dated August 25, 2026, the UPERC bench comprising Chairman Arvind Kumar, Member Sanjay Kumar Singh and Member (Law) Griesh Kumar Vaish formally adopted the ₹2.57 per kWh tariff.
While approving the agreement, the Commission cautioned UPPCL to exercise greater diligence while entering into PPAs with entities involved in pending mergers or amalgamations. UPERC also clarified that MBPL would not be entitled to seek any tariff relief or adjustment arising from project delays, as the delay in obtaining PPA approval was linked to the failure to comply with prescribed procedural timelines.
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