IPPs say Punjab move to revoke contracts will hit investments

Power companies have written to Punjab governor Banwarilal Purohit, saying the state government’s efforts to renege power contracts will jeopardise investments of ₹27,000 crore, which would become bad loans.

If such action is allowed to go through, other states may follow suit, thereby posing a systemic risk to power sector investments- existing and upcoming-including investments in much needed RE space, Association of Power Producers has said.