MERC Allows Withdrawal Of 60 MW Hybrid Power PPA Petition Citing High Tariff Concerns In Maharashtra

The Maharashtra Electricity Regulatory Commission has issued an order in Case No. 178 of 2025 related to a petition filed by three business park companies—Mindspace Business Parks Private Limited, Gigaplex Estate Private Limited, and KRC Infrastructure and Projects Private Limited. The companies had initially approached the Commission to approve a Power Purchase Agreement (PPA) and adopt a tariff for procuring 60 MW of power from wind-solar hybrid projects for a period of 20 years.

However, the case changed direction when the petitioners requested to withdraw their plea on March 12, 2026. They explained that the business environment in Special Economic Zones has been changing, and there is uncertainty in predicting long-term power demand. Due to this, they preferred a more flexible, medium-term arrangement instead of committing to a long-term 20-year contract.

The withdrawal request was opposed by the respondents, including Sunsure Energy Private Limited and Sterling Agro Industries Ltd. They argued that the tariff had already been discovered through a transparent competitive bidding process. As per Section 63 of the Electricity Act, 2003, they said the Commission should adopt the tariff. Sterling Agro also highlighted that they had received Letters of Award and made investments based on the bidding outcome. They requested compensation if the withdrawal was permitted, citing expenses like bank guarantees.

While examining the matter, the Commission clarified that it cannot act as a “mere post office.” Referring to rulings of the Supreme Court of India, it stated that it must ensure tariffs are reasonable and aligned with market conditions, while also protecting consumer interests.

The Commission noted that the discovered tariff in this case, between Rs. 4.35 and Rs. 4.40 per kWh, was much higher than recent market rates for similar wind-solar hybrid projects. It compared these with lower tariffs already adopted for utilities like MSEDCL and TPC. Based on this, the Commission observed that approving such a high tariff for 20 years would not be in public interest.

Finally, the Commission allowed the petitioners to withdraw the case. It directed them to return all Earnest Money Deposits and Bank Guarantees to the respondents within 15 days. At the same time, it stated that the respondents are free to take legal action if they still have any concerns. The order was issued on April 22, 2026.