The Central Electricity Regulatory Commission (CERC) has adopted tariffs for 400 MW of solar power capacity under a petition filed by the Solar Energy Corporation of India (SECI). The order, issued on November 2, 2026, covers projects being developed through special purpose vehicles of Azure Power India, with electricity scheduled for supply to Tata Steel and the West Bengal State Electricity Distribution Company.

The tariff adoption follows a global competitive bidding process launched by SECI on June 25, 2019. The tender covered 7 GW of inter-state transmission system-connected solar power projects linked to 2 GW of annual solar manufacturing capacity. The initiative was intended to support large-scale solar generation while strengthening domestic manufacturing capabilities.

Following the bidding process, developers offered reduced tariffs, allowing SECI to enter into power purchase agreements and power sale agreements. CERC had previously adopted tariffs for 8,900 MW in April 2022 and a further 334 MW in November 2023. The latest petition sought approval for another 400 MW under the same bidding framework.

The first package covers 50 MW developed by Azure Solar. SECI signed the power purchase agreement with the company on January 2, 2026, at Rs. 2.54 per kWh, while the corresponding power sale agreement with Tata Steel was signed on October 17, 2025. The second package covers 350 MW to be developed by Azure Power Fifty-Two, under a power purchase agreement executed on February 3, 2026, at Rs. 2.42 per kWh. Its power sale agreement with the West Bengal State Electricity Distribution Company was signed on January 9, 2026.

CERC also considered SECI's request for a trading margin of Rs. 0.07 per kWh. The commission said the margin for long-term power transactions could be mutually agreed by the trading licensee and seller under the applicable regulations, but would be limited to Rs. 0.02 per kWh if SECI failed to provide prescribed financial security, including an escrow arrangement or an irrevocable, unconditional and revolving letter of credit. CERC subsequently disposed of the petition, providing regulatory approval for procurement and sale of the additional capacity.