Centre takes dim view of Jagan Mohan Reddy’s plan to tweak power tariffs, PPAs

Hyderabad: Reacting to Andhra Pradesh Chief Minister YS Jagan Mohan Reddy’s decision to cancel power purchase agreements in renewable energy sector and renegotiate tariffs, Union renewable energy minister RK Singh has warned this would impact foreign investment flows into the sector.

Ahead of a scheduled meeting of the Andhra government with renewable energy developers on Monday, the minister said, “Power purchase agreements are contracts binding on all the signatories. If the contracts are not honoured, investments will stop coming.”