The Jharkhand State Electricity Regulatory Commission (JSERC) has approved a Power Sale Agreement (PSA) allowing Tata Steel Limited, the distribution licensee for the Jamshedpur licensed area, to procure 50 MW of solar power from the Solar Energy Corporation of India Limited (SECI).

The decision was issued in Case No. 09 of 2026 by the regulatory bench comprising Chairperson Justice Navneet Kumar and Member (Law) Mahendra Prasad. Under the approved agreement, Tata Steel will purchase solar power at a tariff of Rs. 2.54 per kWh. An additional trading margin of Rs. 0.07 per kWh will be paid to SECI for acting as the intermediary procurer.

The agreement originated on October 17, 2025, when Tata Steel and SECI signed the PSA under the Inter-State Transmission System (ISTS) manufacturing scheme. SECI later entered into a back-to-back Power Purchase Agreement with solar developer Azure Solar Private Limited on January 2, 2026, to source the 50 MW capacity.

While SECI approached the Central Electricity Regulatory Commission (CERC) for tariff adoption under Section 63 of the Electricity Act, 2003, Tata Steel filed a separate petition before JSERC seeking approval for the procurement arrangement and its effective implementation.

The solar power procurement is aimed at helping Tata Steel meet its Renewable Purchase Obligation (RPO) requirements. Under Clause 5.2 of the JSERC Regulations, 2024, renewable energy consumption requirements for distribution licensees increase progressively, from 29.91% in 2024–25 to 33.01% in 2025–26 and ultimately to 43.33% by 2029–30.

The approved 50 MW solar procurement will therefore support Tata Steel in meeting its 33.01% renewable energy consumption obligation for 2025–26.

JSERC noted that its statutory responsibilities under Sections 86(1)(b) and 86(1)(e) of the Electricity Act include regulating electricity procurement by distribution licensees and promoting renewable energy generation. The Commission found that procurement through competitive bidding under a Central Government scheme provides a competitively priced source of renewable electricity while serving the broader public interest.

With its final order, JSERC has formally approved the PSA dated October 17, 2025. The solar power procured under the agreement will be eligible for Tata Steel’s RPO compliance, following which the Commission disposed of the petition.