The NDA government's ally in Andhra Pradesh, YSR Congress party, has decided to overturn all agreements with solar and wind project developers, despite the Centre advising against it.
The Jagan Reddy-led government has decided to "review, negotiate and bring down" tariff of all competitively bid, and won renewable power projects in the state.
The state government has formed a high-level negotiation committee to negotiate the tariff reduction with the developers. The committee and the decision was part of an order that the energy department issued to all stakeholders.
The order has been reviewed by Business Standard. The department has cited poor financial status of its distribution companies as the reason to review the tariff. The state discoms have dues of Rs 20,000 crore.