PPAs for renewables: Andhra Pradesh move to hit sector’s growth, RK Singh tells Amit Shah

Stating that the recent decision of the Andhra Pradesh government to revise power purchase agreements (PPAs) signed with solar and wind developers is detrimental to the renewable energy sector, Union power minister RK Singh has intimated home minister Amit Shah that “this has alarmed the sector and the investors”.

The copy of the letter, reviewed by FE, warned that “if this is not corrected, the FDI will stop coming, the banks will stop financing, and the growth in the renewable energy sector will come to a halt”. Since FY15, FDI in the renewable energy sector has been a whopping $4.8 billion. Singh reiterated that “sanctity of the contract is the key to giving confidence to the investors to invest”.