The Punjab State Electricity Regulatory Commission (PSERC) has approved a reduction in tariff for DEE Development Engineers’ 8 MW biomass power plant in Abohar, following a review petition filed by the company. The revised rates will apply from January 1, 2024, through February 4, 2029, the remaining operational period of the plant, reports Energetica India.
The tariff, earlier set at ₹7.47 per unit as of December 2023, has been re-determined at ₹5.477 per unit for FY 2023–24, ₹5.672 per unit for FY 2024–25, and ₹5.877 per unit for FY 2025–26. Based on these changes, Punjab State Power Corporation Ltd. (PSPCL) could recover ₹13.02 crore retrospectively for electricity supplied between January 2024 and April 2025. DEE Development estimates an annual revenue decline of about ₹8.20 crore under the new rates.
KL Bansal, Chairman and Managing Director of DEE Development, voiced strong dissatisfaction with the decision. He argued that benchmarking the plant against co-generation units was inappropriate, as standalone biomass projects rely on agricultural residue sourced externally. He further noted that the order overlooks broader benefits such as rural employment, local economic activity, and environmental gains.
The Abohar plant engages more than 5,000 rural families in collection, transport, and logistics of crop residue. It injects ₹20–25 crore annually into the local economy through paddy straw procurement, prevents stubble burning on over 45,000 acres each year, and avoids more than 1.25 lakh tonnes of carbon emissions, supporting India’s climate targets.
The company said it will call a board meeting to consider legal and strategic options, including a possible appeal against the PSERC order.
DEE Development Engineers Ltd., a publicly listed company, has operations in piping systems manufacturing and renewable energy, with its biomass ventures focused on circular-economy models that turn crop residue into grid-connected green power.
