Foreign investors jittery over Andhra Pradesh’s plan to revoke energy contracts

NEW DELHI: The Andhra Pradesh government’s plan to cancel clean energy contracts signed under the previous government has rattled foreign investors, including sovereign wealth funds and pension funds, said investors, analysts, and chief executives.

The issue, which threatens to derail India’s clean energy run, is being discussed at the top levels of the National Democratic Alliance (NDA) government to ensure quick resolution. Andhra Pradesh has around 7,700 mega watt (MW) of solar and wind projects.

This comes against the backdrop of India’s green energy sector being one of the largest recipients of foreign direct investment (FDI) and the country requiring $30 billion of clean energy investments over the next decade to run the world’s largest green energy programme.