UERC Approves Relocation Of 4 MW Solar Project In Uttarakhand, Keeps Tariff At INR 3.88/kWh

The Uttarakhand Electricity Regulatory Commission (UERC) has approved the relocation of a 4 MW solar power project in Dharasu, Uttarkashi, to private land, resolving a long-running dispute over land and power evacuation. The Commission issued its order on September 29, 2026, approving an agreement reached between the project developer, Uttarakhand Jal Vidyut Nigam Limited (UJVN), and Uttarakhand Power Corporation Limited (UPCL).

The project was being developed by Dwarka Fidato Renewables Pvt. Ltd. under a Build, Own, Operate, and Transfer (BOOT) arrangement on land owned by UJVN. The developer had received a Letter of Intent in February 2024. However, the project encountered several difficulties during development.

A land survey identified forest clearance-related issues affecting around 1 MW of the proposed site. In addition, UPCL determined that evacuation of electricity from the Dharasu location was not feasible without significant grid infrastructure upgrades. Grid capacity in the area had already been allocated to smaller solar projects, creating further challenges for the 4 MW plant.

The developer had completed around 40% of the land levelling work and incurred expenditure of approximately Rs 1.53 crore. With the scheduled commercial operation date approaching, Dwarka Fidato approached UERC in February 2026 seeking an extension of time, alternative evacuation arrangements, or financial relief.

UJVN and UPCL had initially raised objections to the petition, stating that the matter was premature and that the contractual process had not been fully followed. UERC subsequently directed the parties to conduct a joint meeting to find a solution.

The parties reached an amicable settlement on September 3, 2026, which has now been formally approved by the Commission. Under the settlement, Dwarka Fidato will relocate the 4 MW solar project to suitable private land anywhere within Uttarakhand. The relocation and associated costs will be borne entirely by the developer.

The discovered tariff of the project will remain unchanged at Rs 3.88 per kWh. This is below Uttarakhand’s benchmark solar tariff of Rs 4.10 per kWh for FY 2026-27, allowing the project to retain a comparatively lower tariff for consumers.

Since the project will no longer be located on government-owned land, UJVN will cease to be the implementing agency. Its 8% regulatory tariff margin will also be removed under the revised arrangement.

UERC has directed UPCL to terminate its existing agreement with UJVN and execute a fresh power purchase agreement directly with Dwarka Fidato within 20 days. UPCL must provide a technical feasibility report for the proposed new site within five days of receiving the developer’s application.

UJVN has also been directed to refund the developer’s Rs 40 lakh bank guarantee within 15 days. The Commission has set March 31, 2027, as the revised commissioning deadline for the 4 MW solar project.