The Telugu Desam Party (TDP) on Wednesday, November 28, accused the previous YSR Congress Party (YSRCP)-led government in Andhra Pradesh and former Chief Minister YS Jagan Mohan Reddy of signing Power Purchase Agreements (PPAs) for renewable energy at inflated prices to facilitate bribes.
TDP spokesperson Anam Venkata Ramana Reddy alleged that the YSRCP government entered into agreements with the Adani Group at exorbitant rates, resulting in kickbacks. “The only reason for signing those PPAs at higher prices is to accept bribes in the form of kickbacks,” Anam Reddy said.
The TDP made these allegations following a complaint by the Federal Bureau of Investigation (FBI) and the United States Securities and Exchange Commission (US SEC) which has led to an indictment of several people including industrialist Gautam Adani, his nephew Sagar Adani and others.
Though the news of the US indictment of Gautam Adani and others came on November 21, this is the first time the TDP has held a press conference on the subject.
TDP is the largest ally of the BJP which holds 16 Parliamentarians (MPs) in the BJP led National Democratic Alliance (NDA). The TDP’s reluctance to take on Jagan Mohan Reddy who has been mentioned in the complaint filed by the US Securities and Exchange Commission (SEC) was attributed to the involvement of Gautam Adani, who is known to be close to the Prime Minister and other top leaders of the Bharatiya Janata Party (BJP) in the Union Cabinet.
A complaint filed by the US SEC revealed that Jagan Mohan Reddy met Gautam Adani in August 2021 to discuss incentives required to finalize a Power Supply Agreement with the Solar Energy Corporation of India (SECI). Following the meeting, the Andhra Pradesh government agreed to purchase 7,000 MW of power from SECI, which subsequently signed agreements with Adani Green and Azure Power. The complaint alleged that Gautam Adani paid or promised bribes to Andhra Pradesh government officials to facilitate these agreements, with the bribes amounting to Rs 25 lakh per megawatt, totaling Rs 1,750 crore.
Internal communications within Adani Green and Azure Power reportedly confirmed that Andhra Pradesh’s approval was secured after this meeting. The US SEC also noted delays in finalizing the agreements.
While SECI had initially planned to complete the deals with Adani Green and Azure Power within 90 days of issuing Letters of Award, the process extended over 18 months. The US SEC alleged that the delays were overcome through a large-scale bribery scheme involving Gautam Adani and his nephew, Sagar Adani, to incentivise Andhra Pradesh officials to finalise the contracts.
Reacting to these allegations, Andhra Pradesh Chief Minister Chandrababu Naidu stated in the Assembly that his government is reviewing the US SEC’s reports. “We will gather all relevant information and take appropriate action,” Naidu said, emphasizing that such allegations damage the state’s reputation. He assured that a detailed plan of action would be announced after further investigation.
Anam Venkata Ramana Reddy criticised Jagan’s decision to approve the deals, pointing out that several other states refrained from purchasing renewable energy citing affordability concerns.
“While several other states said that they could not afford to buy renewable energy, Jagan had no qualms about going ahead,” Reddy said.