PSERC Slashes Tariff for DEE Development’s 8 MW Abohar Biomass Power Plant

The Punjab State Electricity Regulatory Commission (PSERC) has approved a downward revision of the tariff for DEE Development Engineers' s 8 MW biomass power plant in Abohar, Punjab, following a review petition filed by the company. The re-determined tariff covers the plant’s remaining operational period from January 1, 2024, to February 4, 2029.

Previously, the tariff was INR 7.47 per unit as of December 2023. Under the new order, the tariff has been revised to INR 5.477/unit for FY 2023-24, INR 5.672/unit for FY 2024-25, and INR 5.877/unit for FY 2025-26. As a result, the Punjab State Power Corporation Ltd. (PSPCL) may seek retrospective recovery of INR 13.02 crore for electricity supplied between January 2024 and April 2025. Going forward, DEE Development estimates an annual revenue reduction of approximately INR 8.20 crore under the revised rates.

Commenting on the order, KL Bansal, Chairman and Managing Director of DEE Development, expressed strong dissatisfaction. He said the Commission’s approach of benchmarking costs against co-generation units is inappropriate for standalone biomass plants that rely on externally procured agricultural residue. Bansal added that the order ignores critical socio-economic and environmental benefits created by the plant, including rural employment, local economic infusion, and reduction of stubble burning.

The Abohar plant engages over 5,000 rural families in biomass collection, transportation, and logistics. It contributes INR 20–25 crore annually to the local economy through paddy straw procurement and prevents stubble burning on more than 45,000 acres each year. Additionally, it mitigates over 1.25 lakh tonnes of CO₂ emissions, supporting India’s climate goals under the Paris Agreement.

In response to the regulatory development, the company will convene a board meeting to review its legal and strategic options, including potential appeals against the PSERC order and measures to safeguard its long-term operational and financial sustainability.

DEE Development Engineers Ltd. is a publicly listed engineering company with interests in piping systems manufacturing and renewable energy. Its biomass initiatives focus on sustainable, circular-economy solutions that convert agricultural residue into reliable, grid-connected green power.