Centre, Andhra reach a compromise on green contracts

NEW DELHI : The Centre and Andhra Pradesh have reached a compromise to end the impasse over the Y.S. Jagan Mohan Reddy-led government’s controversial decision to reopen renewable energy contracts inked by the previous state government.

The compromise was struck during a meeting attended by Union and state government representatives earlier this month. The formula includes non-revision of those power purchase agreements (PPAs) whose tariffs have been fixed by the state electricity regulator; concessional loans to the Andhra Pradesh government by state-run firms such as Power Finance Corp. Ltd, (PFC), REC Ltd and Indian Renewable Energy Development Agency (IREDA) to clear outstanding dues; and waiver of interstate transmission charges for green energy to help reduce the state’s financial burden.