Kanpur To Get 110 MW Solar Plant After UPERC Nod

17 Jul 2026 CW Team

The Uttar Pradesh Electricity Regulatory Commission (UPERC) approved power purchase agreements and tariffs for two grid connected solar projects that will add 110 megawatt (MW) in the Kanpur region. The projects comprise a 75 MW plant in Kanpur Dehat and a 35 MW project in Kanpur Nagar and will supply electricity to Uttar Pradesh Power Corporation Limited (UPPCL) for 25 years. The approval followed regulatory review of technical and financial proposals.

Vedu Infrastructure Pvt Ltd won the projects through a tariff based competitive bidding process run by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The company formed two special purpose vehicles (SPVs) — Vedu Kanpur Dehat Solar Pvt Ltd and Vedu Kanpur Nagar Solar Pvt Ltd — to implement the works. Contracts are to be executed under the RESCO model.

The discovered tariffs were Rs 2.65 per unit for the 75 MW Kanpur Dehat plant and Rs 2.71 per unit for the 35 MW Kanpur Nagar plant after an e reverse auction in September 2025, with Vedu Infrastructure as the lowest bidder. UPNEDA had floated the tender in April 2025 and seven companies participated, with six qualifying for the financial round. The regulatory order said the tariffs reflected regional irradiation and market benchmarks.

UPERC noted that a reduction in goods and services tax from 12 per cent to 5 per cent for solar generators lowered composite GST incidence to 8.9 per cent from 13.8 per cent, improving project economics. The commission directed that modules and cells be sourced from manufacturers on the Approved List of Models and Manufacturers (ALMM) and ruled that developers would not be eligible for change in law compensation on account of ALMM or basic customs duty related changes. The addition of 110 MW is expected to strengthen the state renewable portfolio and aid clean energy procurement as electricity demand rises in the Kanpur area.

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