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Credit rating agencies have welcomed the Andhra Pradesh High Court’s decision upholding the sanctity of power purchase agreements (PPAs) with private renewable energy generators that the State government had sought to annul and said the ruling would give a major boost for investor confidence. The court’s order, overturning the September 2019 decision of a single judge permitting the State’s discoms to pay power producers at almost half the rate agreed in their contracts, could pave the way for improved liquidity for private solar and wind power generators, the agencies observed. That would, however, hinge on the State paying up its dues for the past three years as the court had ordered, and not filing an appeal in the Supreme Court, they added.