DEE Development Engineers Limited, through its biomass power vertical, has received a revised tariff order from the Punjab State Electricity Regulatory Commission (PSERC) for its Malwa Power Plant, a 6 MW biomass-based facility located in Muktsar, Punjab.
The order determines a revised tariff of ₹5.224 per unit for an extended period of 10 years, following the expiry of the plant’s 20-year Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited in April 2025.
The plant, commissioned in 2005, had been operating under an interim tariff of ₹3.50 per unit during the pendency of the petition. With the issuance of the final order, the revised tariff marks an increase of approximately 49%, with a provision for 5% annual escalation on the variable component.
The revision will directly increase FY 2025–26 PBT by ~₹5.80 crore, arising from the recovery of differential revenue for power supplied between May 2025 and February 2026 under the interim arrangement.
The Malwa Power Plant generates renewable energy using biomass fuels such as rice husk and agricultural residue, contributing to cleaner energy generation while supporting waste-to-energy utilisation in the region. Based on the revised tariff and projected operations at ~85% Plant Load Factor (PLF), the company estimates annual revenue of ~₹24.31 crore from power generation in FY 2026–27, providing improved visibility and stability to its biomass operations.
Commenting on the development, Mr. K. L. Bansal, Chairman and Managing Director, DEE Development Engineers Limited, said:
“We welcome the Hon’ble Punjab State Electricity Regulatory Commission’s order determining the tariff for MPPL’s Muktsar plant at ₹5.224 per kWh for the extended term of 10 years. While our core engineering and piping business continues to drive growth, we remain focused on improving performance across our biomass segment through disciplined operational and cost measures.
The increase in tariff supports better realisations and provides improved visibility for the plant’s operations over the extended period. At the same time, we are advancing our biomass pellet plant to strengthen our presence in the industrial fuel solutions space and build a more integrated biomass value chain.
“We continue to engage constructively within the regulatory framework and are evaluating appropriate legal and regulatory options to further optimise tariff outcomes in line with operating realities, while remaining committed to our green energy operations and delivering sustainable value to all stakeholders.”
To strengthen its biomass operations and expand its presence in industrial fuel solutions, DEE is advancing plans for its Biomass Pellet Plant. The facility, with an installed capacity of 72,000 MT per annum, will convert agricultural residue into biomass pellets for supply to thermal power plants, supporting cleaner fuel adoption and Renewable Purchase Obligation (RPO) compliance.
At an estimated 50% utilisation, the plant is expected to generate ~₹1.95 crore per month (~₹23.40 crore annually), creating a strong complementary revenue stream.
Combined with the biomass power plant, the company’s total revenue potential from its biomass business is estimated at ~₹47.71 crore annually, reinforcing its integrated approach to renewable energy and circular economy solutions.
All other terms of the Power Purchase Agreement (PPA) and related contracts remain unchanged.