Ending months of impasse and uncertainty, the Andhra Pradesh government has started clearing arrears to renewable energy companies, providing partial succour to close to 5,000 MW of green energy projects.
The projects have been battling amplified risks since chief minister Y S Jagan Mohan Reddy soon after taking power last year, decided to set up a committee to renegotiate contracts and stop outstanding dues.
As a first step towards reconciliation, Andhra Pradesh power distribution companies are believed to have released around Rs 2,500 crore this week in several tranches to settle pending payments of September 2018 till June of 2019, persons aware of the development told ET.
This translates to around 40% of total dues the state owes to power generators as yet, industry officials said. However another official said the outgo till date has been around Rs 1500 crore. Read More