MERC approves MSEDCL's deviated bidding documents and adopts Rs.5.55-5.67/kWh tariff for 993 MW medium-term thermal power (5 years, 2025-2030), but reprimands MSEDCL for procedural lapses.
Interlocutory Application (IA) of Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) for urgent listing in Case No. 142 of 2025. And Petition of MSEDCL for seeking approval to bidding documents for Medium Term Procurement of 1000 MW Power through Competitive Bidding Process in the State of Maharashtra read with Regulation 21 of the MERC (Multi Year Tariff) Regulations, 2019).
MSEDCL sought approval for 1000 MW medium-term thermal power procurement via competitive bidding under Section 63 of EA 2003, along with deviations from MoP Standard Bidding Documents (using BHARAT portal instead of DEEP, ceiling tariff mechanism, relaxed technical/financial eligibility, shorter CP timelines, deletion of Utility performance security/termination payment security clauses). MSEDCL floated tender on 20 March 2025 before obtaining Commission approval for deviations, and after e-RA process filed for tariff adoption on 993 MW despite discovered tariff exceeding its own ceiling rate - a procedural violation the Commission flagged.
- Approved RfQ, RfP and APP with deviations from MoP Standard Bidding Documents subject to specified observations.
- Adopted discovered tariff of Rs.5.55/kWh-Rs.5.67/kWh for 993 MW thermal power procurement under Section 63.
- Directed MSEDCL to enter PPA with successful bidders for 5 years (1 Nov 2025 to 31 Oct 2030) and submit signed copy within 1 month.
- Expressed displeasure over MSEDCL proceeding with tendering/e-RA before obtaining approval for bidding deviations, calling it undermining of Commission's jurisdiction.
- Noted discovered tariff exceeded MSEDCL's own ceiling rate of Rs.5.40/kWh but found it comparable to recent DEEP portal discoveries (Rs.5.56-7.10/kWh range) hence market-reflective.
- Directed MSEDCL to avoid such procedural lapses in future; IAs for urgent listing disposed of.
- MSEDCL to sign PPA with successful bidders (Powerpulse/VIPL, Manikaran/VMEPL, JPL Shirpur, JPL Tamnar) as per allocated quantities.
- MSEDCL to submit signed PPA copy to Commission within 1 month of order date (by ~17 Oct 2025).
- Power supply to commence from 1 November 2025 for 5-year term ending 31 October 2030.
- MSEDCL to ensure future compliance - obtain Commission approval for any bidding document deviations BEFORE floating tenders, not after.
- MSEDCL advocate assured Commission such procedural lapse (bidding before approval) will not recur.
- • Discovered tariff of Rs.5.55-5.67/kWh sets a market benchmark for medium-term thermal RTC power in Maharashtra, useful reference for C&I open-access/group captive comparisons.
- • MERC's scrutiny of ceiling-tariff-breach signals tighter regulatory oversight on distcom bidding conduct - developers bidding into future MSEDCL tenders should expect ceiling tariffs to be taken seriously by Commission during tariff adoption.
- • JPL Tamnar's ISTS connectivity and scheduling via MSEDCL's own GNA (saving transmission charges) illustrates a viable inter-state RTC supply model relevant to bidders/developers eyeing similar structures.
- • Approved deviations (relaxed net-worth/technical eligibility, fuel-shortage risk shifted fully to supplier, no Utility performance security) reflect evolving standard terms that generators/traders bidding into Maharashtra medium-term tenders should factor into commercial risk pricing.
This order is a useful pricing anchor (~Rs.5.55-5.67/kWh) for medium-term thermal RTC power in Maharashtra and confirms MERC's willingness to adopt above-ceiling tariffs if benchmarked against other DEEP portal discoveries. However, the Commission's sharp rebuke of MSEDCL for bidding before approval signals procedural risk for distcoms and bidders alike - developers should track whether similar tenders get delayed or restructured going forward. The approved deviations (fuel risk on supplier, no utility performance security, relaxed eligibility) are now a template likely to recur in MSEDCL's future medium-term RFPs.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.