Andhra Pradesh Govt cancels Adani's two projects due to boundary disputes

Andhra Pradesh Government on 28th issued an order to cancel two projects of Adani Green Energy Limited (AGEL) 1200 MW Kurukutti and 1000 MW Karrivalasa Pumped Hydro Storage Power Projects in Parvathipuram Manyam District due to local issues.

AGEL on 12.09.2024, have requested for cancellation of 1200 MW Kurukutti PSP Project and 1000 MW Karrivalasa PSP Projects due to boundary disputes between Odisha and Andhra Pradesh States and requested to refund the facilitation charges paid by AGEL or else to adjust towards the allotment fee due for 1000 MW Pedakota and 600 MW Raiwada PSP Projects. 

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The government said, issued orders according approval to cover the already allotted PSP Projects including 1200 MW Kurukutti PSP and 1000 MW Karrivalasa PSP under AP Pumped Storage Power Promotion Policy 2022 issued Dated 20.12.2022.

The Feasibility Reports for the above projects were prepared by NREDCAP by engaging M/s TCE Ltd and submitted to different directorates of CEA. Survey and Investigations are to be taken up for preparation of Detailed Project Report (DPR). After allocation of the projects, M/s Adani Green Energy Limited has taken over the responsibility of Survey & Investigations and preparation of DPR in respect of 1200 MW Kurukutti PSP and 1000 MW Karrivalasa PSP Projects. 

The refund of the facilitation charges paid by AGEL or else will adjust towards the allotment fee due for 1000 MW Pedakota and 600 MW Raiwada PSP Projects. 

AGEL has paid the facilitation charges for total 2200 MW capacity i.e., Rs. 11,00,00,000+GST (Total amount of Rs. 12,98,00,000) However, they have not reimbursed the expenditure incurred towards the survey and investigations i.e., Rs. 3,49,16,215 for 1200 MW Kurukutti and Rs. 2,97,59,618 for 1000 MW Karrivalasa PSP Projects (Total amount is Rs. 6,46,75,833.00), though NREDCAP raised the demand.