The Maharashtra Electricity Regulatory Commission (MERC) has approved a petition filed by Nidar Utilities Panvel LLP (NUPLLP) for the adoption of a short-term power procurement tariff of ₹5.30 per kWh and validated its Power Purchase Agreement (PPA) with Manikaran Power Limited (MPL). The approval will enable NUPLLP to procure round-the-clock (RTC) electricity to meet the increasing power requirements of consumers in the Panvel Special Economic Zone (SEZ), particularly data centers seeking significant enhancements in their contracted electricity demand.
NUPLLP approached the commission under Section 63 of the Electricity Act, 2003, seeking approval for a tariff discovered through a competitive bidding process. The procurement exercise was conducted through an electronic tender and reverse auction using the Ministry of Power’s Discovery of Efficient Electricity Price (DEEP) portal, in accordance with the applicable bidding guidelines.
Although Manikaran Power Limited was the only bidder to participate in the tender, MERC found that the procurement process complied with the regulatory framework governing competitive bidding. The commission also examined the reasonableness of the discovered tariff before considering its adoption.
Under the agreement, MPL will arrange electricity generated from the facility of Birla Carbon India Private Limited, located at Patalganga in Raigad district, Maharashtra. The procurement involves two separate power supply requirements. NUPLLP will procure 3 MW of RTC power from August 1, 2026, to July 31, 2027, and an additional 2 MW from November 1, 2026, to October 31, 2027. The discovered tariff for both requirements stands at ₹5.30 per kWh at the Maharashtra State Transmission System (STU) periphery.
During its assessment, MERC compared the proposed tariff with short-term power procurement rates adopted by various state utilities and transactions conducted through different digital platforms. The commission observed that comparable short-term procurement tariffs generally ranged between ₹4.62 and ₹10.00 per kWh, depending on seasonal requirements and regional market conditions.
The commission also noted that the newly discovered tariff was lower than the previously approved rate of ₹5.35 per kWh for short-term power procurement by NUPLLP from the same source. This represented a reduction of ₹0.05 per unit, making the latest arrangement economically favourable for consumers.
MERC further considered the risks associated with depending entirely on electricity exchanges. Such procurement could expose NUPLLP to higher Deviation Settlement Mechanism (DSM) penalties during peak demand periods, along with additional interstate transmission losses and charges associated with procurement from the Central Transmission Utility (CTU) periphery.
After examining the bidding process, tariff competitiveness and consumer interest, MERC concluded that the procurement was transparent and consistent with applicable statutory guidelines. The commission accordingly allowed the petition in its entirety, adopted the tariff of ₹5.30 per kWh and approved the PPA between NUPLLP and MPL.
NUPLLP has been directed to submit copies of the executed agreements to the commission for its records. The company can also meet any additional future electricity requirements through fresh short-term competitive bidding or other procurement channels permitted under the applicable regulations.
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