AP Faces Global Arbitration, Thanks to Jagan’s Stubbornness?

AP Faces Global Arbitration, Thanks to Jagan's Stubbornness?

The hasty decisions of YS Jagan Mohan Reddy‘s Government may have landed the country’s image in the soup. Leading Business Newspaper, Business Today reported that 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 canceling clean energy projects.

Citing irregularities by the previous government, these projects were scrapped by the state government in July. Nearly 7,000 Mw of solar and wind power projects face cancellation in AP, putting more than Rs 40,000-crore investment in jeopardy. Banks have put in more than 21,000 Crore in these projects and they may turn to be Non-Performing Assets.

The Union Government did it level best to dissuade the State Government from canceling the Project. Even the courts tried to interfere but the Chief Minister would not listen. With the arbitration threat, the Central Government may be forced to take a tough stance.

Fearing that AP will set a precedent for other states, the Central Government is also mulling to bring in legislation which will not allow canceling the contracts arbitrarily after reaching a certain state. Unless there are proofs of Corruptions, heavy penalties will be imposed on the State Governments who resort to such irresponsible acts.

Follow @mirchi9 for more User Comments
Ram Gopal Varma RGV 12 o CLOCK Movie-Don't MissAdult to Horror, Maverick Director's New MuseRam Gopal Varma has become the spinning mill coming out with back-to-back films as if...Bhanumathi-&-Ramakrishna-AHA-ReviewDon't MissBhanumathi & Ramakrishna Review- Simple Yet BeautifulBOTTOM LINE Simple Yet Beautiful OUR RATING 2.75/5 Runtime: 93 mins What Is the Film...47 Days ZEE5 Telugu Movie ReviewDon't Miss47 Days Review - Tests your Patience LevelsBOTTOM LINE Tests your Patience Levels OUR RATING 1.25/5 Runtime 1hr 44mins What Is the...Vundavalli Aruna KumarDon't MissTime to Kill 'Undavalli' Factor?Veteran Political Leader, Vundavalli Aruna Kumar who never hesitates to proclaim himself as a well-wisher...Allu Arjun's Smuggling Spot ChosenDon't MissAllu Arjun's Smuggling Spot ChosenAllu Arjun's fans are eagerly awaiting to know how and where the makers of 'Pushpa'...