YSRCP Clarifies No Direct Agreement with Adani Group Amid US Bribery Allegations for Solar Power Contracts

The YSR Congress Party (YSRCP) clarified that its government had no direct dealings with the Adani Group. The power sale agreement signed in 2021 involved the Solar Energy Corporation of India Ltd (SECI) and Andhra Pradesh Discoms. This response followed allegations by the US Department of Justice against the Adani Group for bribery related to solar power contracts in Andhra Pradesh during YSRCP's tenure.

The YSRCP stated that the Andhra Pradesh Electricity Regulatory Commission approved the procurement of 7,000 MW in November 2021. Subsequently, on December 1, 2021, SECI and AP Discoms signed the Power Sale Agreement (PSA). The party emphasized that there was no direct agreement between AP DISCOMs and any other entities, including those associated with the Adani Group.

Allegations Against Adani Group

According to the US Department of Justice, Adani, along with seven others, including his nephew Sagar, allegedly paid bribes to unidentified officials in Andhra Pradesh and Odisha. These bribes were reportedly aimed at securing expensive solar power contracts, potentially yielding over USD 2 billion in profit over two decades.

The US Attorney's Office claimed that Adani personally met with government officials in 2021 and 2022. During these meetings, he allegedly offered bribes to facilitate power sale agreements with SECI. The YSR Congress was governing Andhra Pradesh during this period.

Details of Power Procurement

The previous Andhra Pradesh government arranged to procure 7,000 MW of power from SECI at Rs 2.49 per kWh for a 25-year term. The plan included starting with 3,000 MW in FY 2024-25, another 3,000 MW in FY 2025-26, and finally 1,000 MW in FY 2026-27. This agreement also included a waiver of Inter State Transmission System (ISTS) charges.

The Central Electricity Regulatory Commission also approved the Power Purchase Agreement (PPA) with SECI. The YSRCP highlighted that this procurement at a low rate would significantly benefit the state by saving Rs 3,700 crore annually. Over the agreement's duration, the total benefit to Andhra Pradesh would be substantial.

YSRCP reiterated that SECI is a Government of India enterprise and dismissed allegations against the state government as incorrect. They stressed that there was no direct agreement between AP DISCOMs and any entities linked to the Adani Group.