Tulsyan NEC Limited has entered into a Power Purchase Agreement (PPA) with Manikaran Power Limited to supply 60 MW of round-the-clock (RTC) power to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) for five years from April 1, 2026, to March 31, 2031.
The agreement follows Tulsyan NEC’s successful participation as a generator in TNPDCL’s tender for the procurement of 1,000 MW RTC power. The company partnered with licensed power trader Manikaran Power Limited and secured an order for 60 MW of power supply at a tariff of ₹5.91 per unit. Subsequently, Tulsyan NEC received a Letter of Award (LOA) from Manikaran Power Limited and executed the PPA on March 20, 2026.
The development is expected to significantly strengthen operations at Tulsyan NEC’s power plant. Since the plant’s commissioning, the company had not secured a medium-term PPA, which had limited full-scale utilization of the unit and affected profitability. The newly signed agreement ensures the continuous operation of the power plant at full capacity for at least the next five years.
With the signing of the PPA, Tulsyan NEC has also become eligible for coal allocation or coal linkage under the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy, 2025. Access to domestic coal at competitive prices is expected to support stable and profitable operations in the company’s power division during the tenure of the agreement.
The company further stated that it has received Independent Power Producer (IPP) certification from the Central Electricity Inspectorate General, a key requirement for obtaining coal linkage. This certification, combined with the PPA, positions the company to achieve consistent EBITDA generation over the five-year contract period.
Tulsyan NEC confirmed that the agreement with Manikaran Power Limited does not involve any shareholding relationship and does not fall under related-party transactions. The company has also informed the stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the execution of the agreement.
The power supply under the agreement will commence from April 2026 and continue through March 2031 at the fixed tariff specified in the contract.
