Clean energy project cancellations: Andhra faces global arbitration threat

State govt cancelled clean energy projects in July, citing wrong bidding

Leading global financiers have warned the Indian government, through the Ministry of External Affairs (MEA), that they might drag Andhra Pradesh (AP) to international arbitration for cancelling clean energy projects. These were scrapped by the state government in July, citing wrongful bidding.

Sources in the government said several countries had reached out the MEA, expressing concern and indicating global legal action if the issue was not addressed soon. 

Nearly 7,000 Mw of solar and wind power projects face cancellation in AP, putting more than Rs 40,000-crore investment in danger. The investors are apprehensive AP will set a precedent for other