Govt plans to restrict coal supply to Andhra Pradesh
The Centre is considering restriction of coal supplies and all sanctioned loans and funding to Andhra Pradesh from central public sector units (PSUs) such as Power Finance Corp. Ltd (PFC) and REC Ltd, if the state government refuses to reconsider its decision to revise renewable energy contracts, according to two people aware of the development.
Such a measure is likely to be adopted in case of all states that renege on power purchase agreements (PPAs), as such moves send a negative signal to international investors and imperil India’s ability to attract overseas investments.
“This is not specifically targeted at Andhra Pradesh but will be applicable to every state that takes recourse to such a path,” said a senior union government official, one of the two people cited above, requesting anonymity.
