The Central Electricity Regulatory Commission (CERC) has adopted tariffs for a cumulative 400 MW of solar power capacity under a petition filed by the Solar Energy Corporation of India Limited (SECI). The order, issued on November 2, 2026, covers solar projects developed through Special Purpose Vehicles (SPVs) of Azure Power India Private Limited, with electricity scheduled to be supplied to Tata Steel Limited and the West Bengal State Electricity Distribution Company Limited.

The tariff adoption follows a global competitive bidding process initiated by SECI on June 25, 2019. The tender was launched for developing 7 GW of Inter-State Transmission System (ISTS)-connected solar power projects linked with 2 GW of annual solar manufacturing capacity. The initiative aimed to support large-scale solar power generation while strengthening domestic solar manufacturing capabilities.

Following the competitive bidding process, developers offered reduced tariffs, enabling SECI to secure power procurement arrangements through Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs). The commission had previously adopted tariffs for 8,900 MW of capacity in April 2022 and an additional 334 MW in November 2023. The latest petition sought tariff adoption for another 400 MW of capacity under the same bidding framework.

Under the latest order, CERC approved tariffs for two separate project packages. The first package covers 50 MW of solar capacity developed by Azure Solar Private Limited. SECI entered into a PPA with the company on January 2, 2026, at a tariff of ₹2.54 per kWh. The corresponding PSA was signed with Tata Steel Limited on October 17, 2025, for the supply of electricity.

The second package involves 350 MW of solar capacity to be developed by Azure Power Fifty-Two Private Limited. The PPA for this package was executed on February 3, 2026, at a tariff of ₹2.42 per kWh. The associated PSA was signed with the West Bengal State Electricity Distribution Company Limited on January 9, 2026.

The commission also examined SECI’s request for a trading margin of ₹0.07 per kWh for facilitating the sale and purchase of electricity. CERC observed that trading margins for long-term power transactions may be mutually agreed upon between the trading licensee and the seller, subject to the applicable provisions of the Trading Licence Regulations.

However, the commission clarified that the trading margin would be restricted to ₹0.02 per kWh if SECI fails to provide the prescribed financial security arrangements. These include an escrow mechanism or an irrevocable, unconditional and revolving letter of credit to secure payment obligations.

With the adoption of tariffs for both packages and clarification on the applicable trading margin, CERC disposed of SECI’s petition. The order provides regulatory approval for the procurement and sale of the additional 400 MW of solar power capacity, supporting the implementation of projects under the original 7 GW solar manufacturing-linked tender.