The Adani saga has spread to some of the States too, according to a criminal indictment in Federal Court in Brooklyn, the US. Andhra Pradesh government officials allegedly received bribes to the tune of $200 million from Adani Green in connection with a power supply agreement with SECI in 2021, according to the indictment.

The agreement was entered into by the YSR Congress Party government of Y S Jagan Mohan Reddy, which was in power during 2019-24. It lost the mandate in the General Elections held in May 2024. According to the indictment, Gautam Adani personally met with the then Chief Minister of Andhra Pradesh, Jagan Reddy, in August 2021 and discussed the matter of the power supply agreement and the “incentives” needed to make the State government enter into a deal for purchase of 7,000 MW. 

Adani also allegedly promised to bribe government officials for the purpose, as per the document. 

“The bribe to Andhra Pradesh for this power supply agreement was significantly larger than the Odisha power supply agreement... Later statements made by Adani Green executives indicated that the Andhra Pradesh bribe payment was approximately $200 million,’‘ the indictment document said. 

This was also ‘consistent’ with internal records of Adani Green, it added. 

Opposition protest

In 2021, the opposition parties in Andhra Pradesh had demanded that the Jagan Reddy government disclose the nature of the deal. In September 2021, the Communist Party of India (CPI) demanded the State government to disclose the details of a secret meeting between Chief Minister Jagan Reddy and Gautam Adani.

Following a decision of the State government, the Andhra Pradesh Electricity Regulatory Commission (APERC) approved procurement of 7,000 MW in three tranches in November 2021. 

The approval was for the State to procure solar power at ₹2.49 per unit. However, the approval was made subject to the outcome of the High Court’s PIL proceedings.

Subsequently, a tripartite power sale agreement (PSA) between the Solar Energy Corporation of India (SECI), AP Discoms and the government of AP was signed for the purchase of 7,000 MW with an annual ceiling quantum of 17,000 million units for 25 years. 

Similar agreements were also entered into by Odisha, Jammu and Kashmir, Tamil Nadu and Chhattisgarh with SECI, which would procure power from Adani Green Energy.

PSA challenged in HC

The agreement was challenged in the AP High Court by a few petitions, including the one by TDP leader and the current State Finance Minister Payyavula Keshav who contended that AP agreed to pay ₹2.49 per unit when SECI procured solar power from Adani at rates ranging from ₹1.99 to ₹2.09 per unit.

The petitions also objected to the process of agreement which bypassed competitive bidding, violating the Electricity Act and increasing costs for the public.

The High Court directed APERC to decide on the petitions filed by Discoms seeking approval for tripartite agreements between SECI and Adani’s subsidiaries.

After the final hearing on the case in April 2024, APREC approved the tripartite sale agreement of 2021 as it found “all terms of PSA conform to the standard formats and they are not unreasonable nor unconscionable affecting the interests of any stakeholder.”

“The Commission is inclined to approve the Tripartite PSA dated 01.12.2021 and its Supplemental PSA dated 29.12.2023, subject to the outcome of the PIL pending before the Hon’ble High Court of Andhra Pradesh,’‘ the order said.

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