The Andhra Pradesh High Court has stayed the State government’s move to review power purchase agreements of renewable energy companies.

Justice M Ganga Rao, while dealing with a batch of petitions moved by wind and solar energy companies against the operation of the Government directed renegotiation of PPAs, granted a stay and posted the matter for further hearing on August 22.

The State government passed GO No 63 on July 1 appointing a High Power Committee for renegotiation of PPAs and on July 12, the AP Southern Power Distribution Company Ltd served notices to various companies asking them to come for renegotiation and also bring down the tariff for power supply by issuing new bills.

Hearing the petitioners, the Court stayed the operation of GO No 63 and also the operation of notices served on various renewable energy companies. The State government was keen to bring down the cost of supply of power from these renewable energy companies and wanted them to bring down their tariffs to ₹2.44 per unit. This was the tariff discovered at some of the auctions at a later date after the earlier PPAs were inked.

A number of senior lawyers, including Mukul Rahatgi and Vikas Singh, have approached the court on this issue.

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