Power companies have written to Punjab governor Banwarilal Purohit, saying the state
government's efforts to renege power contracts will jeopardise investments of ?27,000
crore, which would become bad loans.
If such action is allowed to go through, other states may follow suit, thereby posing
a systemic risk to power sector investments- existing and upcoming-including
investments in much needed RE space, Association of Power Producers has said.
"India's recently announced target of 500 GW non-fossil fuel-based capacity by 2030
is expected to require more than ?15 lakh crore of investment, which is no easy feat
to achieve. This move by the government of Punjab threatens to jeopardise and put
a question mark on India's aspirational push towards clean energy," it has
written to Purohit.