Review of Power Purchase Agreements may affect sector: India Ratings and Research

VIJAYAWADA: Even as the YSRC government is going full throttle to renegotiate and review solar and wind Power Purchase Agreements (PPAs), India Ratings and Research (Ind-Ra), a credit rating agency, is of the view that the State government’s decision has the potential to “impair the cash flow of projects and may impact investor sentiments in the sector”. It also called the government’s decision radical, which will have far-reaching implications on not just the State’s renewable power sector, but that of the entire country.

“Ind-Ra believes the recent constitution of High-Level Negotiation Committee (HLNC) by Government of Andhra Pradesh to review and renegotiate the signed power purchase agreements (PPAs) with wind and solar power developers has the potential to impair the cash flows of projects and may impact investor sentiments in the sector.