The dues had started mounting after the Andhra Pradesh government stopped payments to green power developers following a standoff over tariffs
BENGALURU: State-run Power Finance Corp has directly paid the dues of Andhra Pradesh power distribution companies of about Rs 600 crore to renewable energy developers by adjusting them against loans it has approved for the utilities, people close to the development said.
The dues had started mounting after the Andhra Pradesh government stopped payments to green power developers following a standoff over tariffs.
Problems had surfaced after the YSR Congress government, which came to power in the state in May 2019 led by YS Jaganmohan Reddy, alleged that the previous regime of N Chandrababu Naidu had signed contracts with the renewable energy developers at inflated tariffs, and refused to honour them. It wanted to renegotiate the contracts at lower rates.
However, after the developers moved the Andhra Pradesh High Court, the court, in December last year, directed that all their pending dues should be paid, even setting the tariff at which the payments should be made. Accordingly, in March this year, state discoms made part payment of around 600 crore to the developers.
The discoms, which also owe a much larger amount to conventional power developers, had sought loans from PFC and Rural Electrification Corporation (REC) to clear their debt. “Andhra discoms had asked PFC and REC for a loan of 6,600 crore, part of which would be used to pay solar and wind developers,” said an industry executive, requesting anonymity.
With the Andhra Pradesh government standing guarantee for the loan, PFC and REC have agreed to provide it under the ‘Atmanirbhar Bharat Abhiyan’ Scheme announced by Prime Minister Narendra Modi to help industry tide through the Covid-19 crisis.
Source: energy.economictimes.indiatimes
