STATE-runMaharashtraState Electricity Distribution Company Limited’s (MSEDCL) move to sign supplementary Power Purchase Agreement (PPA) for additional power of 1,600 MW from NTPC and Atomic Energy Corporation India Limited has run into regulatory wall. During a hearing on MSEDCL plea, MaharashtraEnergyRegulatory Commission (MERC) has put some tough questions to MSEDCL counsel, seeking to know final landing cost considering the price being quoted by the two agencies and non-finalisation of several approvals at this stage. In its interlocutory application, MSEDCL sought urgent listing saying it intends to ink supplementary PPA to procure power from Lara Stage-III (2X800 MW ) Thermal Power Plant of NTPC. Further, it also, sought extension of PPA for a further period of 3 Years, for purchase of 378.67 MW Power from Kakrapar Unit 3 & 4 (2X700 MW ) Atomic Power Station (KAPS-3&4) of NPCIL). MSEDCL counsel explained the need for inking the PPAs citing the rising power demand in Maharashtra. It also explained in details as to reasons for urgency saying NPCI has sought urgent response as to acceptance of power allocation from Kakrapar Units 3 and 4. But the Commission comprising Chairperson Valsa Nair Singh, with Members Anand Limaye and Surendra Biyani asked additional clarification from MSEDCL, as the stated proposed tie-up for 1,600 MW power from NTPC Lara Stage-III is not part of its Resource Adequacy plan submitted to Commission in October 2025. Since the plan is over and above the projected 2,203 MW capacity addition of thermal power in the next five years, the Commission observed that MSEDCL needs to justify the same.

 

Also, they pointed out that tariff from NTPC Lara Stage-III is not yet determined by Central Electricity Regulatory Authority (CERC) and at present the indicative tariff being projected is Rs 4.53/kWh. Since actual tariff will be known only Tariff Order by CERC, Commission cannot accept MSEDCL proposal without knowing the financial implication. As to NTPC issue, the Commission observed that Union Ministry of Power has not decided on allocation of power for Maharashtra from this project. So the quantum and final tariff for the project at this stage remains uncertain.Therefore given the current circumstances it is premature for MSEDCL to approach Commission for approval of 1,600 MW from the NTPC project. Simlarly, during the hearing, it was also stated that for KAPS Unit 3, DAE-notified base tariff of Rs 4.93/unit, excluding fuel/heavy water, insurance, and tax pass-throughs, so MSEDCL was directed to provide details of total tariff payable for the said Unit. As to sourcing power from KAPS Unit 4, the offered tariff is Rs. 4.70/unit, but DAE the Commission said is yet to notify the final tariff for this unit. So there is no clarity on Kakarapar Unit 4 Tariff till DAE notification. MSEDCL is directed to file its submission within two weeks addressing the above queries along with additional justifications, if any, for the proposed procurement. The matter shall be taken up after receipt of the aforesaid submission 5.With the above, the IA 182 of 2026 in Case No. 196 of 2026 stands disposed of. The date of the Hearing in the matter shall be communicated separately by the Commission’s Secretariat.