A report in Economic Times has revealed that Japanese ambassador to India Kenji Hiramatsu wrote to Chief Minister YS Jagan Mohan Reddy against the state’s efforts to cut renewable energy tariffs by reviewing signed-and-sealed contracts. Such a move has unnerved foreign investors and damaged the business environment, the letter says.
Many of these renewable energy companies are funded by overseas sovereign and pension funds. “Many foreign investors, including Japanese companies, are now watching closely the situation unfolding in your state regarding the renewable energy sector,” the Ambassador mentions in the letter.
SB Energy and ReNew Power are two of the biggest renewable energy developers in India and they have sizeable Japanese investments. Both the companies have PPAs signed with Andhra Pradesh Government and they are being reviewed by the new government.
“Our concern as the Japanese government is that if legally binding contracts are not honored, it would cause significant impairment to the business environment of AP state,” they opine. The Japanese Ambassador has asked the Chief Minister to reconsider his decision in the letter. This is a Prime Example of how Jagan Reddy’s Government is going to hurt the foreign investments into India.Don't MissThe Only Weak link’s In Saaho’s RampageThe Saaho mania has started, and in a week when it will be ready to...Don't MissEmpty Theaters Waiting for PrabhasIt sounds amazing that almost empty theaters will be awaiting the arrival of Prabhas' 'Saaho'...Don't MissAP High Court Cancels Polavaram Re-TendersAndhra Pradesh High Court has rapped the State Government on its Knuckles in Polavaram Hydel...Don't MissWhy YSRCP Govt is Keen on Getting Reluctant Blessings of PM Modi?YSR Congress Rajya Sabha MP Vijaya Sai Reddy, the other day, went on to say...Don't MissIn Social Media, None is SparedKarma has come back to bite mega fans in Social Media. Until now, we have...