The efforts of YS jagan Mohan Reddy government to weed out the corruption in the previous government and save the discoms from heavy prices of renewable energy may hit a roadblock. Leading business newspaper, business Today reported that Leading global financiers have warned the indian government, through the Ministry of External Affairs (MEA), that they might drag andhra pradesh (AP) to international arbitration for canceling clean energy projects.
Nearly 7,000 Mw of solar and wind power projects face cancellation in ap, putting more than Rs 40,000-crore investment in jeopardy. The companies worry that this will set a bad precedent to other states and may threaten their investments. The central government also tried to convince jagan not to stop these projects but the chief minister went forward.
Some of the companies are already fighting a legal battle against the government in this issue. andhra pradesh high court had struck down the G.O released by the State government which appoints a committee to review the PPAs signed by the Renewable Energy Companies with the State. The high court had referred the issue to APERC and instructed the Commission to resolve the issue in Six Months.
