The Andhra Pradesh government has cancelled the 1,200 MW Kurukutti and 1,000 MW Karrivalasa PSPs after Adani flagged survey difficulties in disputed border areas.
BY PC Bureau
July 29, 2025: — In a significant development for the renewable energy sector, the Andhra Pradesh government has officially cancelled two major pumped hydro storage power projects (PSPs) proposed by Adani Green Energy Ltd (AGEL), following a formal request from the company. The 1,200 MW Kurukutti and 1,000 MW Karrivalasa projects — both located in the Parvathipuram Manyam district — have been scrapped due to unresolved boundary disputes between Andhra Pradesh and Odisha.
According to a Government Order (GO) issued by Chief Secretary K. Vijayanand, AGEL cited “local issues,” specifically the inter-state border dispute, as the primary reason for seeking withdrawal from the projects. The company had submitted a cancellation request on September 12, 2024, highlighting the practical difficulties in conducting surveys and project-related investigations in the disputed areas.
“The government, after detailed examination of AGEL’s proposal in consultation with various stakeholders, has issued orders for the cancellation of the Kurukutti and Karrivalasa PSPs,” the GO stated.
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The two projects had initially received approval during the tenure of the previous YSRCP government on June 29, 2022. Feasibility studies were conducted by the New and Renewable Energy Development Corporation of Andhra Pradesh Ltd (NREDCAP), which had engaged TCE Ltd for the task. AGEL had undertaken preliminary responsibilities including surveys and preparation of the Detailed Project Reports (DPRs).
The Andhra Pradesh govt has cancelled two Adani Green Energy Ltd’s pumped hydro storage power projects (PSPs) — the 1,200 MW Kurukutti & 1,000 MW Karrivalasa — at the request of the company
Due to boundary disputes between Andhra Pradesh and Odisha, which it termed local issues. pic.twitter.com/yDlbfrRIdu
— Andhra Nexus (@AndhraNexus) July 29, 2025
However, the company reportedly faced persistent difficulties in moving forward due to the unresolved jurisdictional conflict with neighbouring Odisha, which affects the project sites. These local tensions led to delays and legal uncertainties, forcing the company to pull out.
In its communication to the state government, AGEL requested a refund of the facilitation fees it had paid for the cancelled projects. Alternatively, it asked for the fees to be adjusted against pending allotment charges for two other PSPs already sanctioned in its favour — the 1,000 MW Pedakota and 600 MW Raiwada projects.
Supporting the company’s position, NREDCAP Vice Chairman and Managing Director M. Kamalakara Babu noted that AGEL was not at fault for the impasse. He recommended not only cancelling the troubled projects but also allowing AGEL to adjust its previous payments — after deducting costs incurred by the agency for surveys, investigations, and applicable taxes — towards the Pedakota and Raiwada PSPs.
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The matter was taken up in the State Investment Promotion Board (SIPB) meeting held on July 17. The board endorsed the cancellation of the two projects, accepting AGEL’s argument that the situation had rendered further progress unviable due to local issues beyond the developer’s control.
With this move, the state government has sought to maintain investor confidence while recognising the limitations posed by on-ground challenges. It remains to be seen how this decision impacts AGEL’s long-term renewable energy plans in Andhra Pradesh.
