The Uttar Pradesh Electricity Regulatory Commission (UPERC) has dismissed a petition filed by Uttar Pradesh Power Corporation Limited (UPPCL) seeking approval for power supply and banking arrangements involving Grasim Industries Limited (GIL) and Purvanchal Vidyut Vitran Nigam Limited (PuVVNL).
The petition, numbered 2408 of 2026, sought approval for a Supplementary Tripartite Power Supply & Banking Agreement executed on March 30, 2026, between UPPCL, GIL and PuVVNL. UPPCL also requested approval to extend the original tripartite agreement from April 1, 2024, to March 31, 2029, and to apply the provisions of the UPERC (Captive and Renewable Energy) Regulations, 2024.
The original tripartite agreement was executed on February 3, 2021, for banking of electricity generated from GIL’s captive generating station. The matter was heard by the Commission on September 17, 2026.
During its examination, UPERC identified several procedural and technical issues in the petition. The Commission observed that provisions related to electricity banking had been incorporated into the Supplementary Tripartite Agreement even though a separate Banking Agreement was already in place. According to the Commission, this resulted in duplication and created ambiguity regarding the contractual arrangements.
UPERC also raised concerns over the classification of the generating facility. It noted that Annexure-A of the Banking Agreement executed on January 31, 2026, described the facility only as a “Captive Co-Generation” plant. However, it did not clarify whether the plant was based on renewable energy or non-renewable energy.
The Commission observed that this distinction was important because the UPERC (Captive and Renewable Energy) Regulations, 2024 prescribe different provisions depending on the category of the generating plant. In the absence of clear information about the source and classification of the plant, UPERC said it could not determine the applicable banking provisions.
Based on these issues, the Commission dismissed Petition No. 2408 of 2026. However, it issued directions to UPPCL to address the deficiencies before seeking regulatory approval again.
UPPCL has been directed to execute a revised Banking Agreement based on the standard format approved by UPERC and available on the Commission’s website. The power corporation has also been asked to prepare and submit a Draft Model Power Purchase Agreement (PPA) applicable to Non-RE plants for examination by the Commission.
After the revised PPA is executed between the concerned parties, UPPCL will have to file a fresh petition seeking regulatory approval in accordance with Regulation 7 of the UPERC CRE Regulations, 2024.
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