New Delhi, 29/07/2025: Two major hydro energy projects planned by Adani Green Energy Ltd (AGEL) in Andhra Pradesh have been called off due to ongoing border disputes with neighboring Odisha. The state government confirmed the cancellation of the 1,200 MW Kurukutti and 1,000 MW Karrivalasa pumped storage power projects following AGEL’s request to withdraw.
According to a government order issued on Monday, Andhra Pradesh Chief Secretary K. Vijayanand stated that AGEL had written to the government asking to scrap the projects, citing “local issues”—specifically, boundary disagreements between Andhra Pradesh and Odisha.
The government reviewed AGEL’s request in consultation with several departments and agreed to cancel the two projects, which were located in the Parvathipuram Manyam district.
These projects were originally approved on June 29, 2022, under the previous YSRCP administration. Initial studies for the projects were carried out by the New and Renewable Energy Development Corporation of Andhra Pradesh Ltd (NREDCAP) with support from engineering consultancy firm TCE Ltd. AGEL was responsible for field surveys and the creation of a detailed project report.
AGEL first approached the state government on September 12, 2024, requesting that both projects be cancelled due to the unresolved boundary dispute. In that communication, the company also asked for a refund of the facilitation fees it had paid, or for those amounts to be adjusted against other projects it was handling in the state—namely, the 1,000 MW Pedakota and 600 MW Raiwada pumped storage power projects.
AGEL repeated this request in another letter dated May 15, 2025, again citing the same local issues.
In its latest proposal, the company also asked the government to consider adjusting the fees it had already paid—after deducting survey and investigation costs, as well as taxes—toward expenses for the Pedakota and Raiwada projects.
The matter was discussed during a State Investment Promotion Board (SIPB) meeting on July 17, where the cancellation was formally accepted.
Pumped hydro storage projects are crucial for storing excess renewable energy and providing backup power during peak demand. These two cancelled projects were part of AGEL’s broader plan to build energy storage capacity in Andhra Pradesh, a state with strong renewable energy ambitions.
However, the cancellation points to a larger issue—how land and boundary disputes can derail big infrastructure plans. In this case, the location of the projects near a disputed border between Andhra Pradesh and Odisha made the situation complicated for both the developer and the authorities.
While the setback is significant, AGEL continues to pursue other energy storage projects in the state. The Pedakota and Raiwada projects remain active and could help meet the state’s renewable energy goals.
The Andhra Pradesh government has yet to clarify whether it will reassign the Kurukutti and Karrivalasa project sites to another developer or put them on hold indefinitely.
For now, this episode highlights how even the most ambitious clean energy plans must navigate on-the-ground realities—like land ownership, inter-state boundaries, and community concerns—before they can turn into functioning infrastructure.
