Andhra Pradesh contests HC order prohibiting revision of PPAs


Andhra Pradesh contests HC order prohibiting revision of PPAs

The Andhra Pradesh government has challenged an order passed by a single-judge bench of the state high court restraining the government from renegotiating or revising power purchase agreements (PPA) signed with renewable energy companies, saying the court order is “bad in law and contrary to the facts on record”.

In an appeal filed in the high court, the government said it has the right to negotiate power tariffs. It said the single-judge bench erred in ruling that the government being a third party, had no power to issue the July 1order that directed a high-level committee to renegotiate agreements and submit report to the state in 45 days.

The government order was followed by a July 12 letter sent by Southern Andhra Power Distribution Co to 139 power plants, asking wind plants to revise down the tariff to Rs 2.43 per unit and solar plants to reduce the price to Rs 2.44 per unit retrospectively. Read More

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