JSW Steel Coated Products Ltd (JSWSCPL) approached the Maharashtra Electricity Regulatory Commission (MERC) on 19 March 2025, challenging a notice issued by the Maharashtra Energy Development Agency (MEDA). The dispute was about whether the company should follow higher renewable energy purchase targets or continue with a lower fixed rate based on the age of its captive power plants.

The company operates steel plants in Maharashtra and uses electricity generated from its own Captive Power Plants (CPPs). Some of these plants were set up before 1 April 2016. Under the 2019 renewable energy regulations, such older plants were given a special benefit, allowing them to meet a lower Renewable Purchase Obligation (RPO) capped at 9%. JSWSCPL argued that even after the new 2024 amendment, this 9% cap should still apply because the earlier exception was not clearly removed. The company claimed that MEDA acted unfairly by asking it to meet much higher targets, which increased to 29.91% for the financial year 2024-25.

MEDA defended its position by stating that the rules had changed completely after the 2024 amendment. According to the agency, the revised regulations aligned Maharashtra’s renewable targets with the national framework issued by the Ministry of Power. MEDA said that the new rules apply to all obligated entities, including captive users, without any exception.

While reviewing the case, MERC examined both the 2019 regulations and the 2024 amendment. It noted that the Ministry of Power had issued a notification in October 2023 setting minimum renewable energy consumption targets for all designated consumers. A further clarification in April 2025 made it clear that all earlier exemptions for captive users had been removed from 1 April 2024. The Ministry also warned that failure to meet the new targets could lead to penalties under the Energy Conservation Act.

The Commission observed that the RPO framework had undergone a major change from the financial year 2024-25 onward. It stated that the earlier 9% cap was valid only up to 2023-24. After that, the updated rules made it mandatory for all entities to comply with higher renewable targets.

In its final order dated 22 April 2026, MERC upheld MEDA’s notice issued on 10 January 2025 and dismissed the petition filed by JSWSCPL. The Commission also directed the company to submit its RPO compliance data to MEDA as per the revised regulations. The order was signed by Chairperson Valsa Nair Singh along with members Anand M. Limaye and Surendra J. Biyani.