The Maharashtra Electricity Regulatory Commission (MERC) has approved short-term power purchase agreements (PPAs) and adopted discovered tariffs for Nidar Utilities Panvel LLP (NUPLLP) to procure a combined 5 MW of round-the-clock (RTC) electricity for consumers in the Panvel Special Economic Zone (SEZ). The order allows the distribution licensee to purchase power at tariffs of Rs 5.35 per kWh and Rs 4.85 per kWh under two separate agreements awarded through a competitive bidding process.

NUPLLP filed the petition on January 15, 2026, seeking approval under Section 63 of the Electricity Act, 2003, for the adoption of tariffs discovered through competitive bidding. The Commission, comprising Chairperson Valsa Nair Singh and Members Anand M. Limaye and Surendra J. Biyani, allowed the petition after examining the procurement process, discovered prices and supporting documents.

NUPLLP operates as a deemed distribution licensee in the Panvel SEZ, where high-tension industrial consumers, particularly data centres, account for approximately 95% of its electricity load. With consumer demand increasing and existing contracted capacity requiring augmentation, the company initiated short-term power procurement to ensure an uninterrupted electricity supply while avoiding the risk of creating stranded capacity.

The tender covered two separate requirements for continuous power delivery at the Maharashtra State Transmission System periphery. The bidding process was published in national newspapers and conducted through the Ministry of Power’s Discovery of Efficient Electricity Price (DEEP) portal, managed by MSTC Limited. Following technical scrutiny, price bids were evaluated and electronic reverse auctions were conducted to identify the successful bidders.

For the first requirement, Manikaran Power Limited emerged as the successful bidder to supply 2 MW of RTC power at Rs 5.35 per kWh. The agreement covers the period from February 1, 2026, to January 31, 2027. The source of power for this procurement is Birla Carbon India Private Limited.

For the second requirement, Arunachal Pradesh Power Corporation Private Limited was selected to supply 3 MW of RTC power sourced from Apraava Renewable Energy Private Limited. The discovered tariff stands at Rs 4.85 per kWh, with the supply period running from April 1, 2026, to March 31, 2027. Both successful bidders provided unconditional acceptance of their letters of award, and the initial PPAs were signed in early January 2026, subject to regulatory approval.

While examining the petition, MERC compared the discovered tariffs with recently approved short-term power procurement rates in Maharashtra and national benchmarks available on the DEEP portal. The benchmark prices ranged from Rs 4.62 per kWh to Rs 10.00 per kWh. The Commission found both tariffs competitive, reasonable and consistent with prevailing market conditions. It also observed that NUPLLP had complied with the Ministry of Power’s competitive bidding guidelines.

MERC further clarified that NUPLLP must meet its consumers’ electricity requirements if demand increases beyond the currently contracted capacity. The company may undertake fresh short-term bidding or procure additional electricity through power exchanges, subject to the necessary tariff adoption process. The Commission also directed NUPLLP to submit copies of the executed PPAs for its official records.