PPA Dispute: NSEFI Now Urges Andhra Govt to Expedite Proceedings in High Court

A day after requesting Centre, industry body National Solar Energy Federation of India (NSEFI) has now written a letter to the Chief Minister of Andhra Pradesh (AP) Y S Jagan Mohan Reddy seeking his government’s intervention in expediting the proceedings of the High Court for an early decision on the long pending Power Purchase Agreement (PPA) dispute.

August 21, 2020. By Manu Tayal

A day after requesting Centre, industry body National Solar Energy Federation of India (NSEFI) has now written a letter to the Chief Minister of Andhra Pradesh (AP) Y S Jagan Mohan Reddy also seeking his government’s intervention in expediting the proceedings of the High Court for an early decision on the long pending Power Purchase Agreement (PPA) dispute.

The parties involved in the matter are MNRE, Andhra Pradesh Government and a few renewable power generators supplying electricity to the state distribution companies (Discoms).

Earlier, the Jagan Mohan Reddy government, when came to power, had cancelled the solar and wind energy PPAs entered into by the state Discoms during the N Chandrababu Naidu government regime. After that the matter was taken by the industry stakeholders to the Court seeking their dues to be cleared against the power supplied as per the PPAs signed.

NSEFI is a non-profit organization representing solar energy companies active along the whole photovoltaic (PV) value chain i.e. project developers, manufacturers, engineering companies, financing institutions and other stakeholders.

However, the industry body has congratulated the state government on announcing its new Renewable Energy Export Policy, 2020 which will allow land in the state to be used for renewable energy projects for the purpose of export to other states.

It further said, “the industry believes that this is a step in the right direction towards bringing in investment for the RE sector in the State and will also allow state that have limited RE potential, to procure clean, cheap and affordable power.”

Thus, NSEFI requested the state government stating that “many of our member companies are still awaiting the decision on the court cases on Power Purchase Agreement (PPA) dispute pending in the Andhra Pradesh High Court (APHC).”

“The delays in the proceedings and decision from APHC on this matter is having an adverse impact on the investor sentiments and future development of renewable energy sector in the state,” it believes.

Notably, the last date of the hearing in the dispute before the APHC was March 11, 2020, which has been delayed severely on the back of nationwide lockdown due to the spread of the corona virus pandemic.

So, despite the dispute having started one year back, a final decision in the matter is still awaited.

Although, the HC has started functioning, this matter has not been taken up despite filing of urgency application(s) by most of the developers.

Therefore, given the current uncertainty in the economic climate and the fact that renewable energy sector in Andhra Pradesh has the capacity to bring in investments, and create jobs, we would like to request an intervention from the Government of Andhra Pradesh and your good office to seek an early hearing and expedite the decision in the matter from the APHC, so that the sector can move forward, said NSEFI in its letter.

It further highlighted that, “Andhra Pradesh is a major renewable energy producer having an installed renewable energy generation capacity of over 8 GW, and a timely decision on the matter from the APHC is of significant interest in ensuring progress of the renewable sector in the state.”

Undoubtedly! India’s renewable energy industry is among the most promising investment destinations globally. However, such kind of incidences likely to discourage foreign investment into the sector.   

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