Andhra Pradesh Govt Grants Adani's Request to Cancel 2 Projects

The Andhra Pradesh government has cancelled two major pumped hydro storage power projects allotted to Adani Green Energy Ltd (AGEL) following a formal request from the company, as per a PTI report. 

The decision affects the 1,200 MW Kurukutti and 1,000 MW Karrivalasa projects, both located in the Parvathipuram Manyam district. AGEL cited unresolved boundary disputes between Andhra Pradesh and Odisha as the primary reason behind the withdrawal, describing them as “local issues”.

Projects Scrapped Due to Boundary Dispute

In a government order, Chief Secretary K Vijayanand confirmed that AGEL had written to the state on 12 September 2024, requesting the cancellation of both projects due to the ongoing inter-state border conflict. 

He stated, “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.” The projects were initially approved by the previous government on 29 June 2022.

Fee Refund and Developer's Stance

AGEL had also requested that the facilitation charges paid for these projects be refunded or adjusted against future project allotments. Specifically, the company asked that the fees be applied toward the allotment dues for its 1,000 MW Pedakota and 600 MW Raiwada PSP projects. On 15 May 2025, AGEL reiterated this cancellation request, citing difficulties in conducting surveys due to the unresolved border situation.

Government and NREDCAP’s Recommendation

According to Vijayanand, M Kamalakara Babu, Vice-Chairman and Managing Director of the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), advised the government to accept the cancellation as, “there is no fault on the part of the developer.” He also recommended that the fees be adjusted after deducting expenses incurred by NREDCAP for surveys and investigations, and after accounting for taxes. This proposal was subsequently presented at the State Investment Promotion Board (SIPB) meeting held on 17 July, where the cancellation was approved, aligning with the developer’s request.

Also Read: Adani Green Q1 FY26 Results Show ₹713 Crore Profit!

Adani Green Energy Share Price Performance 

As of July 29, 2025, at 10:24 AM, Adani Green Energy share price is trading at ₹1,006.70 per share, reflecting a gain of 0.28%. Over the past month, the stock has declined by 1.84%.

Conclusion

The cancellation of the Kurukutti and Karrivalasa PSPs underscores the operational challenges developers face due to regional disputes. While AGEL’s commitment to its other Andhra Pradesh-based projects continues, this move signals the importance of clear administrative and geographic boundaries in ensuring the successful execution of large-scale renewable infrastructure.

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