Renewable power project developers are staring at weak cash flows from their projects in Andhra Pradesh.
Not paid by the state for a year already, these companies fear that payment will remain stalled till legal clarity emerges on the state’s decision to renegotiate tariff of all renewable projects.
Sector executives said that the unpaid dues total up to Rs 7,000 crore for the past year.
“Through this highly illegal and non-contractual decision to review and bring down tariff, Andhra has landed a lot of players in the soup. Dues of more than Rs 7,000 crore were already there. Owing to the weak cash flow, a lot of smaller companies are staring at a default,” said a senior executive of a leading renewable company.
