The Maharashtra Electricity Regulatory Commission (MERC) has approved Maharashtra Airport Development Company Limited’s (MADC) proposal to procure 10 MW of round-the-clock power for the MIHAN Special Economic Zone (SEZ) in Nagpur. The Commission, through its order dated September 9, 2026, adopted a tariff of Rs. 5.60 per kilowatt-hour (kWh) and approved the Power Purchase Agreement (PPA) signed with RPG Power Trading Company Limited (RPTCL).
The approved PPA will remain valid for five years, from April 1, 2026, to March 31, 2031. MADC operates as a deemed distribution licensee and is responsible for ensuring reliable electricity supply to consumers within the MIHAN SEZ.
MADC’s earlier power procurement arrangement expired on March 31, 2026. While assessing its future requirements, the company estimated that its base power demand would rise from 9.87 MW in FY 2026–27 to 13.87 MW by FY 2030–31. Peak demand is projected to increase from 17.54 MW to 21.54 MW during the same period.
MADC said that a substantial portion of its electricity requirement occurs during evening and night hours, when solar generation is not available. It therefore considered firm round-the-clock conventional power necessary to maintain supply reliability and meet its distribution obligations.
To procure the required power, MADC launched a competitive e-bidding process through the Ministry of Power’s DEEP portal on February 23, 2026. Three bidders qualified for the financial e-reverse auction held on March 20, 2026. These included Energyminds Power Solutions Pvt. Ltd., RPG Power Trading Company Ltd., and Manas Agro Industries and Infrastructure Ltd.
RPTCL emerged as the lowest bidder with a tariff of Rs. 5.60 per kWh. The other bidders quoted Rs. 6.90 per kWh and Rs. 5.61 per kWh. MADC accepted the evaluation committee’s recommendation and issued a Letter of Award to RPTCL on March 21, 2026. The PPA was subsequently signed on March 30, 2026.
MADC approached MERC under Sections 63 and 86(1)(b) of the Electricity Act, 2003, seeking adoption of the discovered tariff and approval of the PPA.
MERC reviewed the bidding process and compared the tariff with recently adopted medium-term power tariffs in Maharashtra and other states, which ranged from Rs. 5.29 to Rs. 7.10 per kWh. The Commission found the Rs. 5.60 per kWh tariff reasonable and competitive.
MERC concluded that the procurement process was transparent and compliant with applicable central government guidelines. It also noted that the arrangement would help MADC reduce exposure to price volatility in short-term power markets.
The Commission allowed the petition and approved the 10 MW power procurement arrangement for five years. MADC has also been directed to submit a copy of the executed PPA to MERC within two weeks for its records.
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