Staff Reporter
Guwahati: The Assam Electricity Regulatory Commission (AERC) has approved the Assam Power Distribution Company Limited’s (APDCL) proposal for the long-term procurement of 3,200 MW (4x800 MW) of coal-based thermal power from a new power plant to be set up in Assam by Adani Power Ltd. The Commission has also granted approval for the signing of the Power Supply Agreement (PSA) between APDCL and Adani Power at a tariff of Rs 6.30 per unit.
APDCL had submitted the petition under Section 63 of the Electricity Act, 2003, seeking approval for the discovered tariff and for adoption of the rate determined through a competitive bidding process on the Ministry of Power’s DEEP (Discovery of Efficient Electricity Price) portal. The company plans to commission the project in phases—the first 800 MW by December 2030, followed by subsequent tranches of 800 MW each at six-month intervals.
During the initial hearing on October 17, 2025, the Commission sought justification for the proposed tariff. The Commission felt that the discovered rate of Rs. 6.30/kWh is slightly on the higher side in comparison to some of the thermal projects in neighbouring states in East India. So, the Commission directed APDCL to negotiate with the lowest bidder, Adani Power Ltd, for a possible reduction.
APDCL’s Managing Director explained that the discovered rate of Rs 6.30/unit is competitive compared to the effective landed cost of power from the existing Bongaigaon Thermal Power Station (Rs 6.64/unit) and the recently procured 500 MW of thermal power at Rs 6.58/unit. The key advantage, he noted, is that the new plant will be located within Assam, using State Transmission Utility (STU) lines, thus avoiding central transmission charges and losses.
On the Commission’s recommendation for negotiation to reduce the rate, APDCL informed the Commission at the subsequent hearing on October 22, 2025, that Adani Power had declined further reduction, citing market realities and project-specific challenges. The company highlighted rising equipment costs, difficult site conditions in Assam in a seismic zone, and shorter annual construction windows as major cost factors.
Adani Power also noted that its quoted fixed charge of Rs 4.16/kWh for APDCL was lower than those discovered in similar recent bids—such as Madhya Pradesh’s Rs 4.22–Rs 4.30/kWh and Bihar’s Rs 4.17/kWh—despite Assam’s more challenging conditions.
After reviewing the submissions, the Commission accepted APDCL’s justification, acknowledging that the tariff reflects prevailing market rates and the specific cost challenges of setting up a greenfield project in Assam.
“In light of the National Electricity Policy, National Electricity Plan, and Tariff Policy under Section 3 of the Electricity Act, 2003, the Commission approves in principle the discovered tariff rate of Rs 6.30/kWh as negotiated between APDCL and Adani Power Ltd.,” the AERC order stated.
Following this approval, APDCL can now proceed to sign the Power Supply Agreement (PSA) with Adani Power Ltd. for the proposed 3,200 MW coal-based thermal power project — one of the largest energy investments in Assam’s history.
Adani Power Ltd quoted the lowest rate among the firms that submitted bids for the supply of power to APDCL, the other bidders being JSW Energy Limited, Lalitpur Power Generation Company Limited, MB Power (Madhya Pradesh) Limited, and Torrent Power Limited.
Also Read: Small tea growers seek halt to green leaf supply from Arunachal Pradesh