AP power sector investments in limbo on tariff concerns

Investors are scaling back investment plans in the Andhra Pradesh power sector as the deadlock continues over the possibility of the State reneging on its contracts.

At least half a dozen companies that BusinessLine spoke to opined that the AP government’s decision to cancel solar and wind power projects entered into by the N Chandrababu Naidu government is weighing heavily on their minds.

Following this development, a petition was filed by renewable energy firms which led the AP High Court to order a stay against State government renegotiating tariffs of signed contracts.