The Andhra Pradesh Southern Power Distribution Company Ltd (APSPDCL) has served a notice to Solar Energy Corporation of India (SECI) to slash tariffs from ₹4.50 a unit it had contracted in 2016 to ₹2.44.
The notice relates to SECI, as a nodal agency of the government, facilitating the setting up of 400 MW solar power under the Viability Gap Fund scheme during October 2016, where the tariff for power supply from these plants was fixed at ₹4.50/unit for the entire power purchase agreement (PPA) period and approved by the State power regulator.
This move comes in the backdrop of the YS Jaganmohan Reddy government deciding to renegotiate PPAs to bring down the tariffs quoted by wind and solar power projects. A Government Order was issued on July 1, 2019 outlining the government thinking and intent.
