The deal, already under the shadow of a US bribery investigation, has run into additional complications over demands by the state government to waive transmission charges, according to a Reuters report.
According to the report, Andhra Pradesh has sought guarantees that the central-mandated transmission fee, which could increase the cost of solar power by about 40%, will be waived—an ask that is difficult to fulfil legally.
The fee is embedded in central regulations and would require intervention at a policy level to be modified or waived.
The development could potentially delay or impact the offtake under a 2021 agreement signed by Adani Green, Andhra Pradesh, and the Solar Energy Corporation of India (SECI)—a government entity tasked with ensuring all contractual terms are adhered to.
Since April, Adani has reportedly sent multiple letters to the Andhra Pradesh government urging it to begin drawing power as per the agreement.In its most recent correspondence, Adani Green informed the state that it is ready to supply 4,312 MW of solar power. The total agreement covers 7,000 MW of solar generation, making it one of the largest renewable power supply deals in the country.The situation adds to Adani Green’s ongoing operational challenges, as the company navigates regulatory and legal complexities both in India and abroad.
Adani Green shares closed 2.8% higher at Rs 896.15 on the BSE on Wednesday.
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