Andhra Pradesh cancels 2 Adani pumped storage projects citing company's request

Hyderabad: The Andhra Pradesh government has canceled two pumped storage power (PSP) projects allotted to Adani Green Energy Limited (AGEL) in Parvathipuram Manyam district, citing ongoing border disputes with Odisha.

AGEL had recently requested the cancellation of two major projects - 1,200 MW Kurukutti PSP Project and the 1,000 MW Karrivalasa PSP Project. The company cited boundary disputes between Odisha and Andhra Pradesh as the primary reason for the cancellation request.

AGEL also sought either a refund of the facilitation charges it had paid or an adjustment of these fees toward the allotment costs for two other projects the 1,000 MW Pedakota and 600 MW Raiwada PSP Projects.

The previous Y S Jagan Mohan Reddy government originally allotted these PSP projects to AGEL in 2022. The New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) prepared feasibility reports for the projects by engaging M/s TCE Ltd, which were subsequently submitted to various directorates of the Central Electricity Authority (CEA).

While survey and investigation work for the Detailed Project Report (DPR) was scheduled to begin after project allocation, AGEL assumed responsibility for this phase and incurred preliminary expenses. However, the ongoing border disputes significantly hindered the survey and investigation process.

Taking into account the practical difficulties posed by the border disputes, NREDCAP's vice chairman and managing director recommended that the Andhra Pradesh government consider canceling the Kurukutti and Karrivalasa PSP projects. The agency emphasized that the cancellation was not due to any fault on AGEL's part.

NREDCAP also proposed adjusting the facilitation fees paid for the cancelled projects toward the 1,000 MW Pedakota PSP and 600 MW Raiwada PSP projects, both allocated to Adani Green Energy Limited's group companies.

The proposal was presented to the State Investment Promotion Board (SIPB) during its July 17 meeting. "SIPB has agreed for cancellation of 1,200 MW Kurukutti and 1,000 MW Karrivalasa Pumped Hydro Storage Power Projects in Parvathipuram Manyam District allotted to M/s. Adani Green Energy Ltd. due to local issues, as per the request of the developer," said a government order issued by state chief secretary K Vijayanand.

The cancellation comes amid significant opposition from local tribal communities who have been protesting against pumped storage power projects in the neighboring ASR district. This local resistance has created additional challenges for project implementation in the region.

Of the seven PSP projects approved by the previous Y S Jagan government, four are located in Schedule-5 regions, which are areas with significant tribal populations requiring special protection under the Constitution.

These include the Yerravaram PSP in Chintapalli and the Koyyurumandals and Pedakota PSP in the Ananthagiri mandal, both in the ASR district.

Two others are Kurukutti in the Salur mandal and Karrivalasa in the Pachipenta mandal, both in the Parvathipuram-Manyam district.

While Adani Green Energy Ltd had been permitted to develop the PSPs in Kurukutti, Karrivalasa, and Pedakota, the Yerravalam project was assigned to Shirdi Sai Electricals. NREDCAP serves as the nodal agency overseeing all these projects.