Andhra Pradesh Government Weighs Options Amid Adani Green Energy PPA Bribery Allegations

The Andhra Pradesh government is reportedly considering significant measures regarding its power purchase agreement (PPA) with Adani Green Energy in light of allegations of bribery to secure solar project contracts. These allegations surfaced following an indictment by the U.S. Department of Justice, accusing Adani Group and other entities of unethical practices in multiple states, including Andhra Pradesh.

Potential Actions on the Adani Green Energy PPA

According to sources cited by The Economic Times, the Andhra Pradesh government is exploring three primary options:

1. Cancellation of the PPA: The state government is deliberating on writing to the Solar Energy Corporation of India (SECI) to cancel the PPA outright. Under this agreement, Andhra Pradesh is committed to purchasing 7,000 MW of solar power from SECI.

2. Central Agency Investigation: A recommendation for a central-level investigation into the bribery allegations is also under consideration.

3. Formation of a Cabinet Sub-Committee: The state government is contemplating forming a committee to investigate the allegations, along with temporarily putting the PPA on hold.

   
   

Allegations of Bribery and High Electricity Costs

The U.S. indictment alleges that the Adani Group, along with Azure Power, paid $265 million in bribes to officials across several states, including Andhra Pradesh, Tamil Nadu, Odisha, Chhattisgarh, and the Union Territory of Jammu and Kashmir.

These allegations stem from the period when SECI awarded letters of award to Adani Green and Azure Power in June 2020. However, SECI reportedly struggled to find discoms willing to purchase power from these projects due to high electricity costs. Allegedly, bribes were paid to state officials to facilitate agreements with discoms, leading to the eventual signing of the PPA.

Broader Implications for the Renewable Energy Sector

The controversy casts a shadow on India’s ambitious renewable energy goals and raises questions about transparency in awarding large-scale solar contracts. Andhra Pradesh’s response to the situation may set a precedent for how similar cases are handled in the future.