DEE Development Engineers Limited (DDEL) has announced a significant regulatory victory for its wholly-owned subsidiary, Malwa Power Private Limited (MPPL). The Punjab State Electricity Regulatory Commission (PSERC) has issued a favorable ruling, confirming the extension of MPPL's Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL) for an additional 10 years beyond its previous expiration date of April 27, 2025.

Key Highlights of the Regulatory Ruling

• The PSERC has established that the PPA between MPPL and PSPCL has been extended for 10 years.
• The commission clarified that PSPCL does not have the authority to unilaterally fix tariffs for the extended period.
• PSERC affirmed its jurisdiction to determine the tariff applicable for the extended 10-year period.
• A hearing is scheduled for November 6, 2025, to determine the new tariff rate.

Current Operations and Future Expectations

MPPL, which generates electricity from biomass (primarily paddy straw or "Parali"), is currently supplying power to PSPCL at ₹3.50 per unit under an interim order issued by PSERC on April 24, 2025. This rate was initially set unilaterally by PSPCL, prompting MPPL to file a petition with PSERC.

The management of DEE Development Engineers Limited expressed optimism about the upcoming tariff determination. They noted that PSERC has historically considered both variable and fixed costs when setting tariffs, which could lead to a more favorable rate for MPPL in the future.

Implications for Sustainable Energy

This ruling is particularly significant for DDEL's renewable energy initiatives. The company's focus on converting agricultural residue into grid-connected green power aligns with sustainable, circular-economy solutions. The extension of the PPA ensures continued support for these environmentally friendly practices in Punjab's energy sector.

Company's Stance

In a press release, DDEL stated, "Since it has now been categorically clarified that PSERC has the jurisdiction to determine the tariff for the extended period, and considering that PSPCL, while fixing the rate of ₹3.50 per unit, had not followed any set procedure or precedence and just decided on ad hoc basis, we remain very hopeful of a favorable outcome in the matter of tariff determination for MPPL during the extended period."

The company emphasized PSERC's consistent practice of considering both variable and fixed costs in tariff determinations, reinforcing their expectation of a balanced approach in the upcoming hearing.

As the renewable energy landscape continues to evolve, this regulatory decision marks a positive step for DEE Development Engineers Limited and its subsidiary in their pursuit of sustainable power generation and supply in Punjab.

DEE Development Engineers Limited , a prominent player in the biomass power sector, has taken legal action against recent tariff revisions while simultaneously announcing plans for significant fund raising. These developments mark a crucial juncture for the company as it navigates regulatory challenges and seeks to strengthen its financial position.

Legal Challenge Against Tariff Reduction

DEE Development Engineers has filed a civil writ petition in the High Court of Punjab and Haryana, contesting orders issued by the Punjab State Electricity Regulatory Commission (PSERC). The company is challenging a series of orders passed between May and September, which substantially reduced the variable cost component of tariff for its 8 MW Biomass Power Project.

The contested PSERC orders have cut the tariff from ₹5.89 per kWh to ₹3.90 per kWh, with a 5% escalation. This significant reduction could have considerable implications for the company's revenue stream from its biomass power operations.

The High Court has admitted the petition and issued notices to the respondents. As the matter remains pending adjudication, the outcome of this legal challenge could have far-reaching consequences for DEE Development Engineers and potentially set a precedent for tariff regulations in the renewable energy sector.

Corporate Initiatives: Fund Raising and Capital Restructuring

In a parallel development, the Board of Directors of DEE Development Engineers has approved a series of strategic financial moves:

1. Fund Raising Initiative: The company plans to raise funds up to ₹300.00 crore through various means, including the issuance of equity shares and other eligible securities. This could be executed through public issues, rights issues, preferential allotments, private placements, or Qualified Institutions Placements (QIPs).

2. Authorized Share Capital Reclassification: The Board has approved a reclassification of the company's Authorized Share Capital. The new structure will consist of 8,50,00,000 equity shares of ₹10.00 each, totaling ₹85.00 crore. This move eliminates the previous allocation for preference shares, potentially simplifying the company's capital structure.

These corporate actions are subject to shareholder approval, which the company plans to seek through an Extraordinary General Meeting or a Postal Ballot process.

Implications and Outlook

The dual approach of legal action and financial restructuring underscores DEE Development Engineers' proactive stance in addressing challenges and opportunities. The outcome of the tariff dispute could significantly impact the company's operational economics in the biomass power sector. Meanwhile, the proposed fund-raising initiative, if successful, could provide the company with substantial capital for growth, debt reduction, or other strategic initiatives.

As these developments unfold, stakeholders will be keenly watching how DEE Development Engineers navigates these regulatory and financial landscapes, and how these moves might reshape its position in the renewable energy market.