Adani power deal under scrutiny’: Andhra official

The Andhra Pradesh government is reconsidering all the internal files to decide whether the state should retain or cancel a power supply contract with the Solar Energy Corp of India due to the allegations by New York prosecutors that the Adani Group has given approximately $265 million in bribes to several Indian state officials to secure the contracts.

The US indictment alleges that $228 million was given to the state electricity distribution companies of Andhra Pradesh which led to an agreement to buy around seven gigawatts of solar power.

As per the allegation, there was an agreement between SECI and the Adani group to purchase solar power at a definite price which will be then sold to the states. However, no states showed interest in signing a Power Sales Agreement because of the high rate. And according to the allegation, Adani induced them to sign the agreement.

The chairman of the state biodiversity board and TDP spokesperson N Vijaya Kumar said “this 25-year agreement needs to thoroughly studied to understand if the discontinuation would create any legal complications further, since it involves not just SECI and the state government, yet also the electricity regulatory commission that approved for the PPA. The government will decide only after the complete legal scrutinization of the agreement”.

However, he agreed that the consequence of the deal creates a burden on the exchequer and the eventual losers are the consumers.

The accusations have brought fresh attention to one of the largest business conglomerates in India and the dealings it has with government entities.

The Adani Group has refused such claims, stating them as baseless. The YSR congress party that led the administration of the state during the claimed misconduct has also refused any wrongdoing.