In a climbdown, Andhra may give concessions to power producers
In a softening of its stand, the Andhra Pradesh government led by chief minister Y.S. Jagan Mohan Reddy has communicated its willingness to renegotiate clean energy tariffs with developers, quoting an initial figure of ₹2.43 per unit and ₹2.44 per unit for wind and solar power tariffs respectively. Andhra Pradesh is trying to rework power purchase agreements (PPAs) signed by the previous government for wind and solar power with average tariffs (FY14) of ₹4.70 per unit and ₹5.8 per unit, respectively.
The state has India’s second largest installed capacity of clean energy, accounting for around 10% of India’s green energy capacity, with investments of around ₹60,000 crore. Of this, around ₹15,000 crore is equity and the balance is debt.
