Adani Green Energy Projects Cancelled in Andhra Pradesh

The Andhra Pradesh government has officially cancelled two major pumped hydro storage projects allotted to Adani Green Energy Ltd (AGEL), following a formal request from the company, reported news agency PTI. The decision, approved by the State Investment Promotion Board (SIPB) on July 17, stems from unresolved boundary disputes between Andhra Pradesh and neighboring Odisha that have stalled project development.

Projects Cancelled:

• Kurukutti Pumped Hydro Storage Project – 1,200 MW
• Karrivalasa Pumped Hydro Storage Project – 1,000 MW

Both were located in Parvathipuram Manyam district and allotted to Adani Green Energy Ltd (AGEL).

Why Were They Cancelled?

• AGEL requested cancellation due to boundary disputes between Andhra Pradesh and Odisha, which hindered surveys and investigations.
• The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) confirmed the challenges and stated that AGEL was not at fault.
• The State Investment Promotion Board (SIPB) approved the cancellation on July 17, 2025, after reviewing AGEL’s proposal.

Financial Adjustments Requested

• AGEL paid ₹12.98 crore in facilitation charges for the two projects.
• The company requested either a refund or adjustment of these charges toward two other allotted projects:
• Pedakota PSP – 1,000 MW
• Raiwada PSP – 600 MW

Background

• The projects were approved under the YSRCP government on June 29, 2022. 
• Feasibility reports were prepared by TCE Ltd, and AGEL was responsible for the Detailed Project Report (DPR) and surveys.

Broader Implications

• The cancellation highlights the risks of inter-state land disputes in infrastructure planning.
• It underscores the need for clear land acquisition strategies and local stakeholder engagement, especially in Schedule-5 tribal regions.