DEE Development Engineers Limited has received a significant regulatory boost for its renewable energy business, with the Punjab State Electricity Regulatory Commission approving a revised tariff for its Malwa Power Plant in Punjab.
The regulator has set a new tariff of ₹5.224 per unit for a 10-year extended period, replacing the earlier interim tariff of ₹3.50 per unit. The revised tariff will be applicable to the company’s 6 MW biomass-based facility located in Muktsar, following the expiry of its 20-year Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited in April 2025.
The approved tariff structure includes a fixed component of ₹0.97 per unit and a variable component of ₹4.254 per unit, with the latter subject to an annual escalation of 5%. This marks an increase of nearly 49% over the interim tariff.
Revision is expected to deliver a direct uplift of approximately ₹5.80 crore to the company’s profit before tax (PBT) for FY 2025–26. This gain will primarily come from the recovery of differential revenue for electricity supplied between May 2025 and February 2026.
Looking ahead, the company estimates annual revenue of around ₹24.31 crore from the plant in FY 2026–27, assuming operations at an 85% plant load factor (PLF). The revised tariff provides improved earnings visibility and stability for its biomass segment.
Commissioned in 2005, the Malwa Power Plant generates renewable energy using biomass fuels such as rice husk and agricultural residue. The facility plays a dual role in clean energy generation and agricultural waste utilisation, aligning with India’s broader sustainability goals.
CMD KL Bansal said the order enhances realisations and provides long-term operational clarity, while reaffirming the company’s commitment to optimising performance within the regulatory framework.
In parallel, DEE is expanding its footprint in the biomass value chain through a planned biomass pellet plant with a capacity of 72,000 metric tonnes per annum. The facility will convert agricultural residue into industrial fuel for thermal power plants, supporting cleaner energy adoption and Renewable Purchase Obligation (RPO) compliance.
At 50% utilisation, the pellet plant is projected to generate approximately ₹1.95 crore per month, translating to around ₹23.40 crore annually.
With the combined contribution from the biomass power plant and the upcoming pellet facility, DEE estimates a total annual revenue potential of approximately ₹47.71 crore from its biomass business.
The company continues to focus on building an integrated renewable energy and circular economy model, while also evaluating regulatory and legal avenues to further optimise tariff outcomes.
