The Jharkhand State Electricity Regulatory Commission (JSERC) has approved Tata Steel Limited’s proposal to procure 50 MW of solar power from the Solar Energy Corporation of India (SECI) for its electricity distribution operations in the Jamshedpur licensed area.
Under the approved Power Sale Agreement (PSA), Tata Steel will procure solar electricity at a tariff of ₹2.54 per kWh, along with a ₹0.07 per kWh trading margin payable to SECI as the intermediary procurer.
The agreement was originally signed between Tata Steel and SECI on October 17, 2025, under the Inter-State Transmission System (ISTS) manufacturing scheme. SECI subsequently entered into a back-to-back Power Purchase Agreement with Azure Solar Private Limited on January 2, 2026, for the supply of the 50 MW solar capacity.
Supporting Tata Steel’s Renewable Energy Obligations
The approved procurement will help Tata Steel meet its Renewable Purchase Obligation (RPO) requirements. Jharkhand’s renewable energy consumption targets for distribution licensees are scheduled to increase progressively in the coming years.
For 2025–26, Tata Steel is required to meet a renewable energy consumption target of 33.01%. The additional solar power procurement is expected to contribute towards meeting this requirement.
JSERC noted that procuring renewable electricity through a competitively bid central government scheme provides access to renewable power at a competitive tariff while supporting the state’s broader clean-energy objectives.
The Commission also highlighted its statutory responsibility to regulate electricity procurement by distribution licensees and promote renewable energy generation under the Electricity Act, 2003.
With its latest order, JSERC has formally approved Tata Steel’s PSA with SECI. The 50 MW solar power procurement will be eligible for Tata Steel’s RPO compliance, strengthening the company’s renewable energy sourcing and supporting the wider adoption of solar power in Jharkhand.
