DEE subsidiary gets PPA extension, tariff dispute ongoing

DEE Development Engineers Limited announced on September 20, 2025, that its wholly-owned subsidiary, Malwa Power Private Limited (MPPL), secured a 10-year extension for its Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL). The PPA, for biomass-based electricity generation, had originally expired on April 27, 2025, with PSPCL initially fixing a tariff of ₹3.50 per unit unilaterally.

MPPL had petitioned the Punjab State Electricity Regulatory Commission (PSERC) to determine the tariff for the extended period. On September 18, 2025, PSERC ruled that the PPA extension is established and PSPCL lacks the authority to unilaterally set the tariff. PSERC confirmed its power to determine the tariff for the 10-year extension, with further hearings scheduled for November 6, 2025, to establish the tariff.

The company anticipates a favorable outcome, citing PSERC's past practice of considering both variable and fixed costs in tariff determination. During the interim period, electricity supply has continued at a tariff of ₹3.50 per unit as per PSERC's order dated April 24, 2025.