Mumbai: The Andhra Pradesh High Court has stayed a move by the state government to lower tariffs paid to clean energy companies supplying power to the state, Mint has learnt. This will give private developers temporarily relief from seeing their revenue sinking.
On Wednesday, Mint reported that several renewable power producers had challenged the Andhra Pradesh government’s move to renegotiate power purchase agreements (PPAs), which could see a downward revision of current tariffs. These companies filed a writ petition in the Andhra Pradesh High Court seeking a stay on the state government’s 1 July order.
On 1 July, the state directed a high-level negotiation committee to use current tariff rates, rates prevalent at the time of commissioning of projects, and the current opportunity cost of other sources of power to benchmark and renegotiate agreements, and submit a report in 45 days.
