In what can be termed as huge embarrassment for Andhra Pradesh Government, the Confederation of Indian Industry (CII) has urged the central government to not release more funds to Andhra Pradesh from the Rs 90,000 crore discom liquidity package until its existing dues are cleared.
As a part of their negotiations in PPAs of Wind and Solar Projects, Jagan Govenrment clarified that it would not honour power purchase agreements signed by the previous government. The companies got a stay order and asked the Discoms to clear the dues.
The court said solar developers should be paid Rs 2.44 per unit of energy and wind developers Rs. 2.43 per unit until the matter reaches a conclusion. The discoms have only cleared 2,500 Crore which is just 40% of the dues and the State still owes them 1000 Crores more.
CII urged the Central Government to intervene in this issue and also urged not to release further funds to AP Discoms as their deductions can not be considered legitimate under the incumbent regulatory or legal framework. This is first of its kind happening for the state and will be a big embarrassment.
