YSRCP responds to US federal courts indictment of Adani and allegations against the erstwhile Andhra Pradesh government
The YSRCP said it had not signed any power purchase deal with private entities, including the Adani Group, when it ruled Andhra Pradesh.
In a statement issued on Thursday, 21 November, the now-opposition party said its deal was with the Solar Energy Corporation of India (SECI), a public-sector unit.
The statement was issued after a federal court in Brooklyn, US, indicted Adani Group Chairman Gautam Adani and seven others for conspiring financial fraud.
In a 41-page document, the US Securities and Exchange Commission (SEC) said Adani had personally met a “high-ranking Indian official” and “paid or promised a bribe” to Andhra Pradesh government officials “to cause the relevant Andhra Pradesh government entities to enter into Power Supply Agreements with SECI for the purchase of 7,000 MW of power capacity.
The US federal court’s indictment said a certain “Foreign Official #1” had received a bribe of about $228 million.
Related: SEC links Jagan Mohan Reddy to bribery allegations
YSRCP blames TDP, Congress
Refuting the charge, the YSRCP said, “Andhra Pradesh distribution utilities supply close to 12,500 MU of free power per annum to the agriculture sector.” It added that the government compensates the supply costs to the power utilities for the same.
The party blamed the previous governments (TDP, and Congress in united Andhra Pradesh) for putting undue stress on DISCOMS by executing Power Purchase Agreements (PPAs) at rates as high as ₹5.10 per kWh.
“With a view to mitigate this problem, the State Government of Andhra Pradesh in 2020 proposed to install 10,000 MW of solar capacity in solar parks to be developed in the state of AP,” the YSRCP said.
It reported floating a tender and receiving 24 bids but not commencing it due to legal and regulatory hurdles. However, the state received an offer from the SECI to supply 7,000 MW at ₹2.49 per kWh. It included a waiver on the Inter-State Transmission Service (ISTS) charges.
SECI entered into an agreement with Andhra Pradesh to provide the power in two installments of 3,000 MW and 1,000 MW between 2024 and 2027.
The YSRCP added that the agreement received approval from the Andhra Pradesh Electricity Regulatory Commission (APERC) and the Central Electricity Regulatory Commission (CERC).
“There is no direct agreement between AP DISCOMs and any other entities including those belonging to the Adani group. Therefore, the allegations made against the State Government, in the light of the indictment are incorrect,” it stated.
The statement further said the agreement would save the state ₹3,700 crore per year, amounting to about ₹92,500 over the 25 years for which the agreement was signed. It said the project would substantially benefit Andhra Pradesh.
Related: High-ranking Andhra government official was offered ₹1,750 crore
Mysterious “Foreign Official #1”
The US federal court indictment mentioned “Foreign Official #1.”
“Foreign Official #1 was a citizen of India who resided in India. From approximately May 2019 through June 2024, Foreign Official #1 served as a high-ranking government official of Andhra Pradesh, India,” the report read.
“GAUTAM S. ADANI personally met with Foreign Official #1 in Andhra Pradesh to advance the execution of a PSA between SECI and Andhra Pradesh’s state electricity distribution companies,” the document further stated.
It also alleged that the “Foreign Official #1” was bribed ₹1,750 crore — or $228 million — to facilitate the signing of the PPA between the SECI and state DISCOMs.
Interestingly, the YSRCP rebuttal has completely omitted this allegation, even as it stated that the allegation against the former government was incorrect.
(Edited by Majnu Babu).
