Home / Business and Economy / Andhra Pradesh Greenlights Adani Power Deal Amid Bribery Allegations
Andhra Pradesh Greenlights Adani Power Deal Amid Bribery Allegations
1 Mar
Summary
- Andhra Pradesh government approved 300 MW power offtake deal.
- Deal operationalized 15 months after US bribery charges surfaced.
- State will not bear inter-state transmission charges for the deal.
Fifteen months after US bribery allegations surfaced, the N Chandrababu Naidu-led Andhra Pradesh government has approved the operationalization of a 300 MW power supply agreement (PSA) with SECI, linked to Adani Green Energy.
The state's special chief secretary issued an order on February 26, approving the commencement of power scheduling and offtake. This approval is contingent on the state not bearing inter-state transmission system charges and losses up to the delivery point.
The deal's approval follows a period where the state government had kept the decision in abeyance and reviewed the financial impact of cancelling the power supply agreement.
This solar power deal became a focal point in US Securities and Exchange Commission filings, which alleged a meeting between Gautam Adani and Jagan Mohan Reddy in August 2021, prior to the PSA with SECI. The US Justice Department claimed that kickbacks were offered to facilitate the purchase of solar power from SECI.
