Following Andhra Pradesh’s proposal to improve energy deals, govt urges states to rethink the determination

The Indian government is urging areas that are renegotiating deals to review their choice, as states backtrack from being renewable power investment agreements.

“We are mindful of the difficulties being faced by investors in some instances where the state government is trying to renegotiate some of the executed contracts,” India’s oil minister Dharmendra Pradhan said.

“Our government has requested state governments to reconsider their decision, as this will jeopardize future investment in not only the concerned state but also the country as a whole.”

Andhra Pradesh state has proposed renewable energy generators to cut taxes and disregard being recorded, people with experience of the matter stated last month. That happened in rating declines for renewable energy firms with plans in the southern state.

Renegotiating prices could adversely impact Prime Minister Narendra Modi’s goal of installing 175 gigawatts of renewable capacity by 2022 in the South Asian nation, which has awarded some of the world’s lowest green energy tariffs.

Pradhan stated the country is attempting investments for its expanding energy area including in research, city gas projects and renewables, as it tries to fit a $5 trillion that increases affordable energy to its 1.3 billion people. That would need foreign property, he said.

“Investments are not for charity, investments are for-profit,” he said at the summit. Investors “should come to my market. It’s a huge market and their investment should be respected and secured.”

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