DEE Development Engineers Limited has received a revised tariff order from the Punjab State Electricity Regulatory Commission for its 6 MW biomass-based Malwa Power Plant located in Muktsar, Punjab.
As per the order, the commission has approved a tariff of ₹5.224 per unit for a further 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 tariff petition. The revised tariff reflects an increase of around 49%, along with a provision for a 5% annual escalation on the variable component.
The company stated that the revision will positively impact its financials, with an estimated increase of approximately ₹5.80 crore in profit before tax (PBT) for FY2025–26. This is attributed to 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, supporting cleaner power generation and waste-to-energy utilisation in the region. Based on the revised tariff and an expected Plant Load Factor (PLF) of around 85%, the company projects annual revenue of approximately ₹24.31 crore from the facility in FY2026–27.
Commenting on the development, K. L. Bansal said the revised tariff enhances revenue visibility and supports improved operational performance over the extended period. He added that the company remains focused on strengthening its biomass segment alongside its core engineering and piping business.
In addition, the company is advancing plans for a biomass pellet plant with a capacity of 72,000 metric tonnes per annum. The facility will convert agricultural residue into biomass pellets for supply to thermal power plants, aiding cleaner fuel adoption and Renewable Purchase Obligation (RPO) compliance.
At an estimated 50% utilisation, the pellet plant is expected to generate around ₹1.95 crore per month, translating to approximately ₹23.40 crore annually. Combined with the biomass power plant, DEE’s total annual revenue potential from its biomass business is estimated at around ₹47.71 crore.
The company noted that all other terms of the existing Power Purchase Agreement and related contracts remain unchanged.
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