TERC Directs Longtharai Power And TSECL To Sign PPA For 10 MW Solar Project In Tripura

The Tripura Electricity Regulatory Commission (TERC) has directed Longtharai Power Private Limited and Tripura State Electricity Corporation Limited (TSECL) to execute a formal Power Purchase Agreement (PPA) for a proposed solar power project in the state. The final order, issued on June 17, 2026, brings clarity to a petition filed by the private developer seeking assurance for power procurement and tariff approval.

The case began when Longtharai Power proposed setting up a 50 MW solar power plant in Tripura. The company requested the commission to ensure that TSECL would purchase the electricity generated by the project. It also sought clarification on the applicable tariff for the proposed power supply.

The matter was heard by the commission, comprising Chairman Hemant Verma and Member Puspita Chakraborty, in March 2026. Instead of immediately deciding on the petition, TERC directed both Longtharai Power and TSECL to hold detailed discussions. The commission observed that issues related to project feasibility, commercial viability, and procurement terms could be better resolved through mutual consultation between the developer and the state utility.

Accordingly, both parties were instructed to complete discussions within 60 days and submit a joint report outlining the outcome. The consultations focused on the technical, financial, and commercial aspects of the proposed solar project.

Following a series of meetings in June 2026, representatives of both organizations reached an agreement. The discussions involved senior officials, including TSECL Managing Director Biswajit Basu and Longtharai Power Director Ratan Debnath. During the negotiations, the project size was revised from the originally proposed 50 MW to 10 MW to better match the state’s requirements and project feasibility.

The two parties also agreed on a ceiling tariff of ₹4.25 per kWh for the electricity generated by the project. However, the tariff remains subject to statutory and regulatory approvals before it can be implemented.

To support the proposed tariff, Longtharai Power submitted an assessment highlighting the project’s expected economic and environmental benefits. According to the developer, the 10 MW solar plant will strengthen Tripura’s energy security by increasing local renewable power generation. The project is also expected to help the state meet its Renewable Purchase Obligation (RPO) targets while reducing dependence on imported electricity.

The company further stated that the project would contribute to environmental sustainability by promoting clean energy and lowering carbon emissions. It also highlighted the potential for local employment generation and economic development during the construction and operational phases.

In its final order, TERC noted that while both parties had reached a consensus, the agreed terms would become legally valid only after signing a formal Power Purchase Agreement in accordance with the provisions of the Electricity Act, 2003.

Since the signed agreement was not yet available on record, the commission disposed of the petition while directing Longtharai Power and TSECL to execute the PPA incorporating the agreed 10 MW project capacity and the ceiling tariff of ₹4.25 per kWh. The completed agreement must then be submitted to TERC for final regulatory approval before the project can move forward.