PARVATHIPURAM\MANYAM: The Andhra Pradesh government has cancelled two Pumped Hydro Storage Power projects (PSPs) of 1,200mw capacity at Kurukutti under Salur mandal and 1,000mw capacity at Karrivalasa under Pachipenta mandal in the district.
The previous government led by then Chief Minister YS Jagan Mohan Reddy had given permission to M/s Adani Green Energy Ltd (AGEL) to set up these two PSPs in Andhra Odisha Border (AOB). However, the present TDP led NDA coalition government cancelled the projects due to local issues and at the request of the developer. They also requested to refund the facilitation charges paid by M/s AGEL or else to adjust towards the allotment fee due for 1000 MW Pedakota and 600 MW Raiwada PSP Projects. Chief secretary K Vijayanand issued GO MS 55, cancelling the allotments to AGEL on Monday.
According to GO MS 55 issued by government of Andhra Pradesh, New and Renewable Development Corporation of Andhra Pradesh (NREDCAP) has prepared the Feasibility Reports for two pumped hydro storage power projects (PSPs) of 1,200mw capacity at Kurukutti and 1,000mw capacity at Karrivalasa under Parvathipuram-Manyam by engaging M/s. TCE Ltd and submitted to different directorates of CEA.
Survey and investigations are to be taken up for the preparation of Detailed Project Report (DPR). However, M/s. Adani Green Energy Limited has taken over the responsibility of survey and investigations as well as preparation of DPR in respect of 1200 MW Kurukutti PSP and 1000 MW Karrivalasa PSP Projects after allocation of the projects.
The YSRCP government has issued G.O.Ms.No.6 according approval to cover the already allotted PSP Projects including above PSP Projects under AP Pumped Storage Power Promotion Policy 2022 on17 April 2023.
As per the provisions of the AP Pumped Storage Power Promotion Policy 2022, “Developer will take over the responsibility of balance process of DPR preparation and obtaining clearances from the date of allotment of project by paying the cost incurred by Nodal Agency till the date of allotment of the project and up to the date the responsibility of DPR & clearances shall stand transferred to the Developer.”
According to the GO, actual expenditure incurred by the NREDCAP in preparation of the DPRs and carrying out various field investigations of the said PSP projects and expenditure towards obtaining various clearances shall be reimbursed /paid by M/s. Adani Green Energy Ltd. as and when demand raised by the NREDCAP.
AGEL has paid the facilitation charges Rs.11,00,00,000+GST (Total amount of Rs.12,98,00,000) for these two PSPs. However, they have not reimbursed the expenditure incurred towards the survey and investigations Rs 6,46,75,833 including Rs 3,49,16,215 for 1200 MW Kurukutti and Rs.2,97,59,618 for 1000 MW Karrivalasa PSP Projects.
Despite of demand raised by NREDCAP for the reimbursement of the expenditure, AGEL have requested for cancellation of Kurukutti and Karrivalasa PSPs 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.
The AGEL has placed proposal for cancellation of allotment of the two projects before the State Investment Promotion Board (SIPB) meeting held on July 17. The board agreed for the cancellation after a detailed examination of the proposal of AGEL in consultation with various stakeholders.