The hard-found compromise reached last month to end the impasse over Andhra Pradesh’s decision to relook at renewable energy contracts has floundered, said several Union and state government officials.
The government led by chief minister Y.S. Jagan Mohan Reddy has upped the ante by raising doubts on the capability of the committee headed by the Union power secretary to resolve the problem. It has also raised the issue of the Centre’s assistance in times of need and has cautioned that central schemes might be hit in the absence of such help.
This comes against the backdrop of politics increasingly trumping economics in India’s federated political structure. Another case in point is the Shiv Sena-led Maharashtra government’s decision to review several high-profile infrastructure projects approved by the previous Bharatiya Janata Party government.
