Adani Group Indictment Case: No Direct Agreement With Adani, Says YSR Congress on Allegation of Bribe for Power Purchase

Responding to the US Department of Justice indictment of Adani Group for allegedly paying bribes for solar power contracts in Andhra Pradesh during YSRCP rule, the party on Thursday said that it had no direct agreement with Adani.

In a statement, the party said the 7,000 MW power procurement was approved by the AP Electricity Regulatory Commission in November 2021, after which the Power Sale Agreement (PSA) was signed on December 1, 2021, between Solar Energy Corporation of India Ltd ( SECI) and AP Discoms.

On Andhra Pradesh link in Adani matter, YSR Congress Party Central Office says, "...It is worth mentioning that, the power procurement of 7,000 MW was approved by APERC vide its order dated 11-Nov-2021. After the APERC approval was obtained, the Power Sale Agreement (PSA) was… pic.twitter.com/sOoi47XSVC

— ANI (@ANI) November 22, 2024

Adani, India's second-richest man, and seven others, including his nephew Sagar, have been charged by the US Department of Justice with paying bribes to unidentified officials of state governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning more than USD 2 billion in profit over 20 years.

According to the US Attorney's Office, Adani met personally with government officials in 2021 and 2022 and offered them bribes to sign power sale agreements with SECI. YSR Congress was in power in Andhra Pradesh during the period under discussion.

Also Read | US Securities & Exchange commission charges Gautam Adani and others in alleged bribery scheme.

 "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 YSRCP said.

The PPA with SECI was also approved by the Central Electricity Regulatory Commission, it said. The previous Andhra Pradesh government entered into an arrangement to procure power from SECI to the tune of 7,000 MW at Rs 2.49 per kWh for 25 year period with 3,000 MW commencing in FY 2024-25, 3,000 MW commencing in FY 2025-26 and 1,000 MW commencing in FY 2026-27 with waiver of the ISTS ( Inter State Transmission System) charges, the party said in a statement.

The statement added that procuring power at such a cheap rate would substantially benefit the state, with a saving of Rs 3,700 crore per annum. As the agreement is for a period of 25 years, the total benefit to the state on account of this agreement would be immense.

(With inputs from agencies)