India must quickly resolve the row over plans by a key renewables state to cut already-agreed tariffs for projects or risk wider contagion of confidence nationally, warned a major financial ratings agency, as it said more than 5GW of projects is at risk of defaulting on debt because of the Andhra Pradesh policy.

The decision by the new Andhra Pradesh (AP) government to order previously signed wind and solar PPAs to be to “reviewed, negotiated and brought down” has escalated into a major dispute between the state on one side, and national-level government officials and project operators on the other.