The Maharashtra Electricity Regulatory Commission (MERC) has approved a petition filed by the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) for the adoption of tariffs to procure 2,269 MW of solar power under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0. The order, issued on August 5, 2026, allows MSEDCL to move ahead with long-term power procurement aimed at supplying reliable daytime electricity to agricultural consumers while reducing the utility’s overall power purchase costs.
The solar power procurement is part of Maharashtra’s broader effort to solarize agricultural feeders across the state. The MSKVY 2.0 scheme is designed to provide farmers with clean and dependable daytime electricity, reducing dependence on conventional power sources and supporting the state’s renewable energy goals.
The competitive bidding process for the 2,269 MW capacity was conducted by MSEB Solar Agro Power Limited (MSAPL), which acted as the nodal agency for MSEDCL. The tender covered 257 substations across different districts of Maharashtra and was completed through two rounds of bidding followed by e-reverse auctions. The process attracted strong participation from developers, resulting in highly competitive tariff bids.
The discovered tariffs ranged from Rs. 2.24 per kilowatt-hour (kWh) to Rs. 2.90 per kWh, with a weighted average tariff of Rs. 2.825 per kWh. Several companies secured project capacities across different substations, including Reliance Industries Ltd., Ceigall India Ltd., Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Oswal Woollen Mills Ltd., Ravindra Energy Ltd., and Dara Engineering and Infrastructures Pvt. Ltd., among other successful bidders.
In its order, MERC observed that the weighted average tariff of Rs. 2.825 per kWh is lower than the average tariff of Rs. 3.08 per kWh approved in earlier rounds of MSKVY 2.0 bidding. The Commission stated that the lower tariffs were achieved through changes made in the tender conditions, including delinking the projects from the Central Financial Assistance available under PM-KUSUM Component C and allowing the use of Non-Domestic Content Requirement (Non-DCR) solar modules.
According to the Commission, Non-DCR solar modules were available at around Rs. 12.37 per Watt-peak compared to approximately Rs. 19.90 per Watt-peak for Domestic Content Requirement (DCR) modules. This significant difference in module prices enabled developers to submit more competitive bids, ultimately benefiting MSEDCL through lower power procurement costs. MERC concluded that the bidding process was transparent, competitive, and reflected prevailing market conditions.
The Commission also noted that electricity generated from these decentralized solar projects will contribute to MSEDCL’s Renewable Purchase Obligation (RPO) compliance. Under Maharashtra’s renewable energy regulations, the Distributed Renewable Energy target is set to increase gradually from 1.5% in FY 2024-25 to 4.5% by FY 2029-30. Since the MSKVY 2.0 projects fall within the applicable capacity limits, the power generated from these substation-based solar plants will qualify toward meeting these distributed renewable energy targets.
The MERC bench, comprising Chairperson Valsa Nair Singh and Members Anand M. Limaye and Surendra J. Biyani, directed MSEDCL and all successful developers to sign Power Purchase Agreements (PPAs) within 30 days from the date of the order and submit copies to the Commission. The approval is expected to accelerate the development of decentralized solar infrastructure across Maharashtra while strengthening renewable energy adoption and ensuring reliable daytime electricity supply for the state’s farming community.
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