The Chhattisgarh State Electricity Regulatory Commission (CSERC) has approved a tariff of ₹3.50 (~$0.0409)/kWh for procuring 310 MW of solar power under the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) Component C.

Background

The decision follows a petition filed by the Chhattisgarh State Power Distribution Company (CSPDCL), seeking approval of the bidding documents and adoption of the tariff for power to be purchased from renewable generators.

The company had issued a Request for Selection (RfS) inviting solar power generators to establish grid-connected solar projects with a cumulative capacity of 600 MW under the KUSUM program. CSPDCL proposed a tariff of ₹3.50 (~$0.0409)/kWh for approval by the Commission.

The proposed tariff was challenged by Vishwa Shakti Industries and Soumitra Fuels who argued that the tariff was unviable due to high project costs, particularly because of the mandatory use of the more expensive Domestic Content Requirement (DCR) panels.

They claimed that the tariff for PM KUSUM Component C would exceed the generic levelized tariff set by the Commission. They also sought modifications in the bid documents, including the removal of metering clauses for agricultural consumers, reevaluation of project costs, reduction in minimum generation and capacity utilization factor requirements, compensation for power losses due to line breakdowns or outages, and state government assistance for land acquisition.

Commission’s Analysis

The Commission examined these objections and noted that CSPDCL had largely modeled its bidding framework on the Maharashtra State Electricity Distribution Company (MSEDCL), with amendments in the metering clause.

It deemed this framework appropriate for Chhattisgarh and approved the bid documents.

Additionally, the Commission reviewed the wide range of rates quoted by bidders, which varied from ₹3.04 (~$0.0355) to ₹9 (~$0.1052)/kWh.

It considered the recommendations of the rate negotiation committee formed by CSPDCL and ultimately approved a tariff of ₹3.50 (~$0.0409)/kWh. This decision was based on negotiated prices, comparable tariffs for similar-sized solar projects, and Central Financial Assistance.

Earlier this year, CSERC issued the Draft Chhattisgarh State Electricity Regulatory Commission (Intra-State Deviation Settlement Mechanism and Related Matters) Regulations, 2025.

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