Despite the Centre’s Rs 1.25-lakh-crore liquidity infusion scheme to enable state distribution companies (discoms) to clear the dues of generators, a large number of renewable energy producers in many states remain to be paid. The situation in Andhra Pradesh is alarming due to the state government’s insistence that old PPAs for solar and wind energy be renegotiated, against the recently discovered price through competitive bidding. In this context, it is important to discuss the implications of the recent judgement of the Andhra Pradesh High Court which has a direct bearing on the survival of renewable energy investors. The issue of electricity falling in the concurrent list of the Constitution also needs to be factored in.
