'No Agreement Between Andhra Discoms And Adani Group': YSRCP Responds To US Prosecutors’ Rs 1,750 Crore Bribery Charge

Former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy’s YSR Congress Party (YSRCP) issued a detailed statement addressing allegations arising from US court filings against Adani Group.

The filings, part of the indictment against Gautam Adani and others, claimed that bribes amounting to Rs 1,750 crore were paid to a senior Andhra Pradesh government official to facilitate power purchase agreements involving Solar Energy Corporation of India (SECI).

The YSRCP central office categorically denied the allegations, stating, “There is no direct agreement between AP power distribution companies and any other entities, including those belonging to the Adani Group. Therefore, the allegations made on the State Government, in the light of the indictment are incorrect.”

The statement started with detailing the issues related to power procurement at the time noting that the state’s distribution utilities provide approximately 12,500 MU (Million Units) of free power annually to the agriculture sector, with the government subsidizing this cost. However, existing Power Purchase Agreements (PPAs) were executed at exorbitant rates, escalating procurement costs to Rs 5.10 per kWh, “making the subsidy cost very burdensome on AP government.”

To address these concerns, the state government proposed installing 10,000 MW (Megawatt) of solar capacity in 2020. A tender for 6,400 MW, floated by Andhra Pradesh Green Energy Corporation Ltd (APGECL), attracted over 24 bids with tariffs ranging between Rs 2.49 and Rs 2.58 per kWh.

Despite legal and regulatory challenges that stalled the tender, the government accepted SECI’s subsequent offer to supply 7,000 MW “at the lowest discovered tariff” Rs 2.49 per kWh (kilowatt-hour) for 25 years, with waiver of the ISTS (inter-state transmission system) charges,”

The statement further remarked that after the APERC (Andhra Pradesh Electricity Regulatory Commission) and CERC (Central Electricity Regulatory Commission) approval was received, the power sale agreement (PSA) was signed on 1 December 2021 between SECI and AP Discoms.

In this engagement, it is necessary to mention that SECI is a Government of India enterprise. There is no direct agreement between AP DISCOMs and any other entities including those belonging to the Adani group, “Therefore, the allegations made on the State Government, in the light of the indictment are incorrect.”

The statement also read that the gains from the agreement would be immense as the power being procured would lead to savings of about 3700 crore and will benefit the interests of State and it's farmers.

Also Read: Adani Group Stocks Rebound Up To 6 Per Cent After US Bribery Allegations Sparked Rs 2.2 Lakh Crore Sell-Off