PSERC Cuts Tariff for DEE’s Abohar Biomass Plant

22 Aug 2025 CW Team

The order, dated 20 August 2025, follows a review petition filed by the company against PSERC’s earlier decision of 15 May 2025. The revised tariff will apply for the remaining useful life of the project, from 1 January 2024 to 4 February 2029.

Tariff Revision:

The applicable tariff has been reduced significantly. While the previous tariff (up to December 2023) stood at Rs 7.47 per unit, the revised rates are Rs 5.477 per unit for FY 2023–24, Rs 5.672 for FY 2024–25, and Rs 5.877 for FY 2025–26.

Financial Impact:

Between January 2024 and April 2025, the plant supplied 75.7 million units of electricity to Punjab State Power Corporation Limited (PSPCL). PSPCL may now raise a retrospective recovery claim of about Rs 130.2 million due to tariff differentials.
Looking ahead, the company estimates an annual revenue reduction of around Rs 82 million if the revised tariff continues to apply.

Company’s Response:

Chairman and Managing Director K.L. Bansal expressed disappointment, calling the order “legally untenable, procedurally flawed, and fundamentally unjust.” He argued that the benchmarking against co-generation units such as sugar mills ignores the higher costs faced by standalone biomass plants dependent on agricultural residue like paddy straw.

The company highlighted the wider value of its operations, which support over 5,000 rural families, inject more than Rs 2.5 billion into local communities over the project’s life, and annually prevent stubble burning on 45,000 acres, mitigating over 125,000 tonnes of CO₂ emissions.

Next Steps:

DEE Development Engineers plans to convene a Board meeting to evaluate its strategy. Options under consideration include legal recourse before the appellate authority and exploring all regulatory measures to safeguard contractual rights and commercial interests.

The company reaffirmed its commitment to renewable energy, rural empowerment, and sustainable stubble management practices, positioning its biomass projects as key contributors to India’s clean energy transition.

DEE Development Engineers Limited has announced that the Punjab State Electricity Regulatory Commission (PSERC) has issued its final order re-determining the tariff for the company’s 8 MW biomass-based power plant in Abohar, Fazilka district, Punjab.The order, dated 20 August 2025, follows a review petition filed by the company against PSERC’s earlier decision of 15 May 2025. The revised tariff will apply for the remaining useful life of the project, from 1 January 2024 to 4 February 2029.Tariff Revision:The applicable tariff has been reduced significantly. While the previous tariff (up to December 2023) stood at Rs 7.47 per unit, the revised rates are Rs 5.477 per unit for FY 2023–24, Rs 5.672 for FY 2024–25, and Rs 5.877 for FY 2025–26.Financial Impact:Between January 2024 and April 2025, the plant supplied 75.7 million units of electricity to Punjab State Power Corporation Limited (PSPCL). PSPCL may now raise a retrospective recovery claim of about Rs 130.2 million due to tariff differentials.Looking ahead, the company estimates an annual revenue reduction of around Rs 82 million if the revised tariff continues to apply.Company’s Response:Chairman and Managing Director K.L. Bansal expressed disappointment, calling the order “legally untenable, procedurally flawed, and fundamentally unjust.” He argued that the benchmarking against co-generation units such as sugar mills ignores the higher costs faced by standalone biomass plants dependent on agricultural residue like paddy straw.The company highlighted the wider value of its operations, which support over 5,000 rural families, inject more than Rs 2.5 billion into local communities over the project’s life, and annually prevent stubble burning on 45,000 acres, mitigating over 125,000 tonnes of CO₂ emissions.Next Steps:DEE Development Engineers plans to convene a Board meeting to evaluate its strategy. Options under consideration include legal recourse before the appellate authority and exploring all regulatory measures to safeguard contractual rights and commercial interests.The company reaffirmed its commitment to renewable energy, rural empowerment, and sustainable stubble management practices, positioning its biomass projects as key contributors to India’s clean energy transition.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..