Green energy developers, caught in a bind due to Y.S. Jagan Mohan Reddy-led Andhra Pradesh government’s decision to reopen power purchase agreements (PPAs), now run the risk of their loan facilities getting recalled, said two people aware of the development.
This comes in the backdrop of 5.2 GW (giga watt) of solar and wind energy projects with an estimated debt exposure of over Rs21,000 crore in the state hanging fire, because of the state government’s decision to reopen renewable energy contracts inked under the previous N. Chandrababu Naidu government.
In a communication to MNRE last month reviewed by Mint, “In these circumstances, generators are gravely harmed as are also running the risk of recall of our loan facilities and consequent shutting down of our projects,” wrote FICCI’s renewable energy CEOs council chairman Ranjit Gupta.
The communication from the lobby group added, “We would also like to draw your attention to the fact that during the pendency of the court proceedings, APSLDC (Andhra Pradesh State Load Dispatch Centre) and APTRANSCO (Andhra Pradesh Transmission Company) have also resorted to excessive illegal curtailment of electricity resulting in huge generation and revenue losses.”
