(ET)
The face-off between the Andhra Pradesh government and renewable energy producers has taken a new turn with union power and renewable energy minister RK Singh writing to chief minister YS Jaganmohan Reddy pointing to the state discoms’ unpaid dues of over Rs 2,000 crore to renewable energy producers and urging him to ensure they are quickly settled. In his letter dated September 2, Singh has noted that some wind and solar projects could turn into non-performing assets (NPAs) if their dues are not promptly paid.
Soon after Jaganmohan Reddy took office in May, he had declared that the state would renegotiate all PPAs signed by the previous Chandrababu Naidu-led government with renewable energy producers as he suspected they were signed at tariffs higher than other states were paying, due to corruption. He soon formed a committee to carry out such renegotiation. The state has threatened to terminate signed PPAs if developers didn’t agree to reduce tariffs.
