Andhra Pradesh CM Naidu turns heat on defaulters in green energy space
Andhra Pradesh
government has launched a crackdown on
renewable energy
developers sitting on land parcels without initiating work and has ordered scrutiny of projects worth ₹4 lakh crore.
In the first action, the government has cancelled a 328 MW
wind power project
allocated to Sreeja Infrastructure, a subsidiary of the Italian renewable energy major Enel Green, which was recently acquired by Gujarat-based
Waaree Energies
. The project was sanctioned in 2018 when Naidu was in power. However, the Capacity Sanction Agreement, required for formal commencement of work, was signed in 2022 under the previous Jagan Mohan Reddy-led YSRCP government.
The company had to complete the project in 24 months by December 2024. The government has now cancelled the project and ordered forfeiture of performance bank guarantee worth ₹6.5 crore. Over the last two weeks, two hydro projects have also been cancelled for delayed implementation.
The Naidu-led administration has now sought updated implementation status and timelines from all renewable projects allotted in the state, covering over 60 GW of capacity. This forms part of a broader audit aimed at unlocking stalled
green energy
potential in Andhra Pradesh. Sources said projects with an investment worth ₹4 lakh crore are under scrutiny.
These include big players like Axis Energy,
Suzlon Energy
, Indosol and Ecoren. According to sources, close to 36 project sites have been allotted to three investors with no progress on ground. Indosol has been allotted 1.52 lakh acres of land to develop 3000 MW project, Ecoren has been allotted 4.35 lakh acres to develop 3500 MW capacity at six locations and Axis has 15.13 lakh acres of land to develop 12,000 MW capacity at different locations. Sources indicated that the government is serious about taking action against those sitting on
solar and wind resources
and action against Sreeja Infrastructure is to signal that failure to commence work immediately would result in cancellation and penalties.
"This is not just about enforcing deadlines. This is about reclaiming credibility, land, and clean energy targets," said an official adding, "Valuable wind zones are being locked up by companies that are not acting. In a resource-constrained geography like ours, we can't afford such strategic delays."
Unlike government land leases, Sreeja's project is slated to be built on private land, but the government had already earmarked exclusive wind coordinates for the project, effectively blocking any other renewable developer from using the site. With limited high-velocity wind zones in Andhra Pradesh, these land-coordinate allocations are prized assets.
For Naidu, who returned to power with a strong development agenda, the message is clear - land is not to be hoarded, and renewable energy, once allotted, must translate into megawatts on the grid. The government has set a target of 160 GW of renewable energy capacity by 2030.
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