Andhra Pradesh govt cancels two Adani projects at company's request

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The Andhra Pradesh government has cancelled two Adani Green Energy Ltd’s (AGEL) pumped hydro storage power projects (PSPs) — the 1,200 MW Kurukutti and 1,000 MW Karrivalasa — at the request of the company due to ‘local issues’, PTI reported on Monday.

 

In a government order, 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 1,200 MW Kurukutti and 1,000 MW Karrivalasa Pumped Hydro Storage Power Projects in Parvathipuram Manyam district allotted to AGEL,” Vijayanand said.

 

YSRCP government gave permission

 

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) with TCE Ltd. At the same time, AGEL took on the responsibility of conducting surveys and investigations, as well as preparing a 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 a refund of the facilitation charges paid by the company or an adjustment of those funds towards the allotment fee due for the 1,000 MW Pedakota and 600 MW Raiwada PSP projects.

 

The Pedakota and Raiwada projects were also allotted to AGEL.

 

Difficulties in conducting survey

 

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

 

Taking into consideration the difficulties in conducting surveys and investigations due to border disputes, the Vice-Chairman and Managing Director of NREDCAP, M Kamalakara Babu, 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.

 

Furthermore, Babu also requested approval to adjust the 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 for taxes payable, in respect of the 1,000 MW Pedakota PSP and 600 MW Raiwada PSP projects.

 

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