Central Electricity Regulatory Commission (CERC) has approved the tariff associated with the surface hydrokinetic power station to be established by Bhakra Beas Management Board (BBMB).
In a very recent order, CERC approved the tariff of Rs.3.39 per kWh for a period of 40 years. The project will be set up by New Delhi-based MACLEC Technical Project Laboratory Pvt Ltd (MACLEC) under the RESCO mode.
MACLEC was selected in October 2025 as the project developer following a tariff-based competitive bidding (TBCB) process in which Passi Machine Tools was the only other qualified bidder.
MACLEC will design, engineer, supply, install and commission, own and operate the 4×250 kW (1 MW) power station that will be based on hydrokinetic technology, an emerging source of renewable energy. BBMB will purchase electricity generated by the hydrokinetic power station at Rs.3.39 per kWh for a period of 40 years.
The power purchase agreement between MACLEC and BBMB was signed on November 20, 2025.
The power project is coming up at the tail race channel of BBMB’s Kotla run-of-river hydropower project (power house) located on the Nangal hydel channel originating from the Nangal dam in Punjab.
It may be noted that the discovered tariff of Rs.3.39 per kWh is understood to be comparatively lower than the tariffs of several hydropower projects currently under construction, as well as those commissioned in recent years.
The upcoming project would generate renewable electricity on a 24×7 basis and is expected to contribute towards reducing the demand-supply gap of the partner states – Punjab, Haryana, Himachal Pradesh and the UT of Chandigarh.
Surface hydrokinetic technology
According to information available on its corporate website, MACLEC is pioneering a technology that will help generate renewable hydropower from flowing water, as opposed to conventional hydropower projects that involve building of dams and reservoirs. Through its SHK (surface hydrokinetic) turbine technology, such hydrokinetic plants can be built on practically any water stream, without altering its natural course.
Background
In October 2021, Central Electricity Authority (CEA) issued a report based on recommendation of a committee comprising representatives of CEA, Ministry of New & Renewable Energy (MNRE), NHPC, THDC India Ltd and IIT-Rourkee to study the concept and commercial application of hydrokinetic turbine technology developed indigenously by MACLEC.
Later, in October 2022, the Union power ministry directed BBMB to undertake new hydroelectric, pumped-storage and renewable energy projects (small hydro, solar, wind, biomass etc.) within the geographical areas of the BBMB partner states.
Pursuant to this, BBMB issued a tender document dated May 23, 2025 for design, engineering, supply, installation, commissioning, ownership, operation and maintenance of a 4×250 kW (1 MW) project at the tail race channel of Kotla hydropower station, under RESCO mode for a period of 40 years.
Since hydrokinetic energy is a novel technology with no specific guidelines issued by the Ministry of Power or MNRE, the bidding process was undertaken in terms of the CVC (Central Vigilance Commission) Manual for procurement of works, the provisions of CEA, and MNRE guidelines for hydro-based RESCO mode.
Featured photograph (source: MACLEC) is for representation only