AP Government’s U-Turn on PPAs Cancellation?

Andhra Pradesh High Court the other day, stayed the G.O. which calls for the review of PPAs with renewable energy companies. The High Court questioned the harsh tone of the government in the letters addressed to the companies. Hours after the high court stay, the government seems to have taken a U-Turn.

Changing its stand with regards to the cancellation of the PPAs of those companies not agreeing for renegotiation, the government said the Discoms will not unilaterally cancel the PPAs but will approach the APERC. The government in its earlier letter to the companies asked them to revise the rates or face the cancellation of PPAs.

The State Government also announced that the PPAs would be canceled and the payments through the orders from July 1 would be stopped for those companies refusing to come for renegotiations. But much to the shock of the government even several companies of the Government of India attended the review meetings.

The next hearing of the case is posted to August 22nd by the Andhra Pradesh High Court. Meanwhile, there is no respite to the State from Power Cuts. From 24X7 Power in the previous rule, there are staggered and unannounced Power Cuts. People suspect that it has got something to do with this PPAs cancellation.