Maharashtra Industrial Township Limited (MITL), formerly known as Aurangabad Industrial Township Limited, has secured approval for a 20 MW solar power purchase agreement (PPA) at a rate of ₹3.42 per kWh for three years. The Maharashtra Electricity Regulatory Commission (MERC) granted this approval following MITL’s petition submitted on November 3, 2023.
MITL, which serves areas including the Shendra and Bidkin Industrial Areas, had previously been exempted from obtaining a Distribution License. The Commission had instructed MITL to seek approval for its power purchase agreements and to issue tenders for power procurement. Currently, MITL supplies electricity to 60 consumers with a connected load of 40 MW and a peak demand of around 25.96 MW. The company is preparing to start electricity distribution in the AURIC area and is developing consumer metering infrastructure while registering with the Maharashtra State Load Dispatch Center.
MITL anticipates a growth in the number of consumers, with a projected total connected load of about 66 MW in the next two to three years. To meet this demand and comply with Renewable Purchase Obligation (RPO) targets, MITL planned to procure conventional power short-term from December 2023 to November 2024 and solar power from December 2023 to November 2026. However, despite several attempts, MITL received no bids for its solar power tenders.
As a result, Maharashtra Industrial Township approached NTPC Vidyut Vyapar Nigam Limited (NVVNL) for solar power procurement. After negotiations, NVVNL offered solar power at ₹3.43 per kWh, which was later reduced to ₹3.42 per kWh. The final rate, after a 0.75% rebate for early payment, stands at an effective tariff of ₹3.394 per kWh.
This approval by the Commission is considered a special case due to the lack of responses to MITL’s tenders and the urgency to commence distribution operations. The decision is granted with the understanding that it will not set a precedent for future cases.
