May get Rs 2,800 crore jolt if SECI pact is junked: Andhra Pradesh minister

The Andhra Pradesh government is currently reluctant to provide decisions about power purchase agreements associated with Adani Group bribery allegations due to the potential financial and legal consequences. Before deciding on any cancellations, we must take into account all factors, including the financial and legal ramifications," said Finance Minister Payyavula Keshav. He declined to elaborate, saying the subject is sub judice.

In December 2021, the government of Andhra Pradesh and the public sector Solar Energy Corp. of India Ltd. inked Andhra Pradesh power sale agreement to progressively acquire 7,000 megawatts of solar energy over a 25-year period. According to the deal, the Adani Group entities would sell the solar electricity to Solar Energy Corporation of India.

The total transaction size was estimated at Rs 1.05 lakh crore after the 25-year contract period ended, subject to the agreed capacity supply being fulfilled, according to a state energy department official. Andhra Pradesh has agreed to pay Solar Energy Corp. Rs 2.49 per unit, or Rs 4,233 crore a year, the official said.

He rejected media reports that he said the Andhra Pradesh government would probably terminate the power purchase agreements with the Adani Group. He went on to say that he was not allowed to say anything more because the world is working under the current laws of the land which means that documents made available by the courts are the accords between themselves and the particular parties to the case.

The Andhra Pradesh government, now ruled by Y.S. Jagan Mohan Reddy, has cancelled the 2019 renewable energy contracts and wind power executed by the N. Chandrababu Naidu government. The source said the state government paid the renewable energy producers close to Rs 6,000 crore in penalties and Rs 3,000 crore in interest in what it termed a judicial tussle led by the National Solar Energy Federation of India.