following U.S. bribery allegations. Senior Minister Nara Lokesh stresses the complexities of canceling the deal, citing legal hurdles and potential power supply disruptions.
By PC Bureau
Andhra Pradesh’s Minister for Education, IT, and Electronics, Nara Lokesh, ,has acknowledged the challenges in canceling the state’s PPA with SECI, citing legal complexities and the risk of disrupting the power supply. In an interview with The Indian Express, Lokesh explained, “It is a long-drawn process. We have to thoroughly evaluate everything before making a decision on scrapping anything.”
The U.S. Department of Justice has indicted Gautam Adani and his associates for allegedly bribing government officials between 2021 and 2022, with the largest bribe—$228 million—allegedly directed toward Andhra Pradesh. This bribe is said to have been intended to secure favorable terms for Adani’s ventures with the state’s electricity distribution companies. Additionally, in August 2021, Adani met with then-Chief Minister Jagan Mohan Reddy, which has added further layers of complexity to the situation.
These contentious PPAs, signed during Reddy’s tenure, commit the state to purchase 7,000 MW of power from Adani Solar at rates considered exorbitant by other states. Concerns regarding the deal were raised in 2021 by Finance Minister Payyavula Keshav and the Andhra Pradesh Assembly’s Public Accounts Committee, which pointed out the lack of a comparative cost analysis for the agreement. The state’s ongoing review reflects its commitment to thoroughly examine the agreements, with Keshav stating, “We are examining all aspects of this issue. A decision will be made after comprehensive review.”
The U.S. indictment further alleges that Gautam Adani played a direct role in securing these PPAs through discussions with senior Andhra Pradesh officials between May 2019 and June 2024, a period that overlaps with Reddy’s time in office. Despite these allegations, the YSR Congress Party (YSRCP) has defended the agreements, emphasizing that they were approved by both the Andhra Pradesh Electricity Regulatory Commission (APERC) and the Central Electricity Regulatory Commission (CERC).
The YSRCP has also justified the higher rates for solar power, arguing that they were necessary to support the government’s commitment to providing free electricity to over 18 lakh farmers, a policy that has been seen as a significant benefit to the agricultural sector. This position was further supported by statements from Nagulapalli Srikant, the then-energy secretary, who emphasized that SECI’s tariffs were the lowest in the country, resulting in substantial savings for the state.
