Revise Tariff for 400 MW of Solar Projects or DISCOMs will Terminate PPA: Andhra Govt to SECI


Revise Tariff for 400 MW of Solar Projects or DISCOMs will Terminate PPA: Andhra Govt to SECI

The future of power sale agreements (PSAs) for 400 MW of grid-connected solar projects in Andhra Pradesh appears uncertain. The Andhra Pradesh Southern Power Distribution Company (APSPDCL) has written to the Solar Energy Corporation of India (SECI) asking to revisit the tariff for 400 MW of grid-connected solar PV projects.

This development took place after Minister for Power, Government of India, R. K. Singh wrote to Andhra Pradesh Chief Minister Jaganmohan Reddy pointing out that the reopening and canceling of a contract can only be done in cases where corruption has been proved based on evidence. Only when there is a clear proof of malpractice, can you resort to renegotiation or cancellation, Singh had advised Reddy.

According to the APSPDCL letter reviewed by Mercom, APSPDCL has asked SECI for a tariff of ₹2.44 (~$0.036)/kWh for 400 MW of solar PV projects that were set up under viability gap funding (VGF) program. Read MOre

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