Andhra Cancels Adani's Power Projects

Amaravati, Jul 28 (PTI) The Andhra Pradesh government has cancelled two Adani Green Energy Ltd's (AGEL) pumped hydro storage power projects (PSP)--1,200 MW Kurukutti and 1,000 MW Karrivalasa--at the request of the company due to "local issues", a top official said on Monday.

In a government order (GO), Chief Secretary K Vijayanand noted that AGEL wrote to the government to cancel these projects due to boundary disputes between Andhra Pradesh and Odisha, which it termed "local issues".

"The government, after detailed examination of the proposal of AGEL in consultation with various stakeholders, has further issued orders for the cancellation of 1200 MW Kurukutti and 1000 MW Karrivalasa Pumped Hydro Storage Power Projects in Parvathipuram Manyam District allotted to AGEL," Vijayanand said.

The AGEL received permission to set up these two projects during the previous YSRCP government on June 29, 2022.

The feasibility reports for these projects were prepared by the New and Renewable Energy Development Corporation of Andhra Pradesh Ltd (NREDCAP) by engaging TCE Ltd while AGEL took up the responsibility of survey and investigations and the preparation of detailed project report (DPR).

On September 12, 2024, AGEL requested the cancellation of these two projects due to a boundary dispute between Odisha and Andhra Pradesh and requested to refund the facilitation charges paid by the company or adjust those funds towards the allotment fee due for 1000 MW Pedakota and 600 MW Raiwada PSP Projects.

The Pedaktoa and Raiwada projects were also allotted to AGEL.

Again on May 15, 2025, AGEL requested the cancellation of the Kurukutti and Karrivalasa PSP projects through a letter, said Vijayanand.

Taking into consideration the difficulties in conducting survey and investigations due to border disputes, the vice chairman and managing director of NREDCAP, M Kamalakara Babu, has requested the government to consider the cancellation of the Kurukutti and Karrivalasa PSP projects as "there is no fault on the part of the developer", AGEL, said Vijayanand.

Further, Babu also requested the approval to adjust fee paid for these projects after deducting the expenses incurred for conducting the survey and investigations by NREDCAP against facilitation fees and DPR expenses after adjusting the taxes payable, in respect of 1000 MW Pedakota PSP and 600 MW Raiwada PSP Projects.

The AGEL's cancellation proposal was placed before the State Investment Promotion Board (SIPB) meeting held on July 17 and it had agreed to cancel Kurukutti and Karrivalasa projects due to local issues as per the request of the developer, added Vijayanand.