The Punjab government led by chief minister Amarinder Singh of the Congress wants to renegotiate clean energy contracts. The Punjab State Power Corp. Ltd (PSPCL) has sought a discount from 1 July, from solar power developers for electricity supplied, because of low interest rates and a financial crunch exacerbated by the covid-19 pandemic, said two people aware of the development.
The development comes amid investor criticism over the attempt by Andhra Pradesh chief minister Y.S. Jagan Mohan Reddy to renegotiate clean energy tariffs. The move by Andhra Pradesh led to the central government pitching to set up an Electricity Contract Enforcement Authority to ensure that conditions in power purchase agreements (PPAs) are followed, through the proposed draft amendments to the Electricity Act 2003.
PSPCL has signed two PPAs with Prayatna Developers Pvt. Ltd (PDPL), a special purpose vehicle promoted by billionaire Gautam Adani’s Adani Power Ltd.