Why 2 Adani projects have been canceled in Andhra Pradesh
What's the story
The Andhra Pradesh government has terminated two pumped hydro storage power projects of Adani Green Energy Ltd (AGEL) at the company's request. The projects, Kurukutti (1,200MW) and Karrivalasa (1,000MW), were scrapped due to "local issues," according to Chief Secretary K Vijayanand. The decision comes after AGEL requested the termination citing boundary disputes between Andhra Pradesh and Odisha.
Project
AGEL's request for project termination
In a government order, Vijayanand said that AGEL had requested the cancellation of these projects on September 12, 2024. The company also sought a refund of facilitation charges paid or their adjustment toward the allotment fee due for two other projects—Pedakota (1,000MW) and Raiwada (600MW). These requests were made in light of border disputes affecting survey and investigation activities for Kurukutti and Karrivalasa.
Oversight
Role of NREDCAP in project preparation
The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) prepared the feasibility reports for these projects. TCE Ltd was also engaged in this process. AGEL was responsible for conducting surveys, investigations, and preparing detailed project reports (DPR). On May 15, 2025, AGEL again requested the cancellation of Kurukutti and Karrivalasa projects due to ongoing border disputes hindering survey activities.
Support
Official backs AGEL's request
M Kamalakara Babu, the Vice Chairman and Managing Director of NREDCAP, backed AGEL's request. He urged the government to consider ending these projects as "there is no fault on part of the developer." Babu also requested approval to adjust fees paid for these projects after deducting the survey costs incurred by NREDCAP against facilitation fees and DPR expenses, after adjusting the taxes payable.