The Indian Wind Power Association (IWPA) has filed an Interlocutory Appeal (IA) in the Andhra Pradesh High Court against the state’s distribution companies for not having paid wind developers since March 2020.
Since it came into power in 2019, the YSR-Congress led government has attempted to renegotiate solar and wind Power Purchase Agreements signed and sealed by the previous state government because it maintains the erstwhile government (led by the Telugu Desam Party) had signed them at disproportionately high rates, alleging there was corruption involved.
Developers challenged the government’s move in the Andhra Pradesh High Court. In late 2019, the court directed the distribution companies (discoms) to pay a tariff of Rs.2.43 per unit to all wind developers henceforth, the record low wind tariff at the time, till the matter was resolved.
But developers have not received any payment after March 2020 even at this interim rate, sources said. Discoms have been citing the Covid-19 disruption as the reason, but developers feel that is an excuse to deny legitimate dues. “Because of these payment defaults, some developers are getting NPA notices,” said a source close to the development, requesting anonymity.
IWPA has filed the IA in order to get an urgent listing of the matter. Developers have also individually attempted to transfer their cases to the Supreme Court because the High Court has been hearing very few renewable energy related matters since the start of the pandemic.