Adani ‘Bribed’ Power To Get Even Costlier!

Former YCP goverment, under the leadership of YS Jagan Mohan Reddy, committed various corrupt activities during its tenure. One of them was the solar power purchases made by Andhra Pradesh government during YS Jagan’s tenure with the Adani Group.

Recently, the U.S. Justice Department accused a state official in office between 2019 and June 2024 of accepting Rs. 1,750 crore to favor power purchase agreements involving the Adani group.

As usual, Jagan denied these allegations blatantly even when the scan was unearthed with proofs. Amidst this controversy, here comes another big news related to this deal.

According to the latest reports, the cost of solar power supplied to Andhra Pradesh from a Adani group will not come at the initially quoted price of Rs. 2.49 per kWh. Reportedly, the tariff now increases by 50 paise due to the basic customs duty (BCD) on imported solar panels and cells. This will give an additional burden of Rs. 850 crore on the state government.

Effectively, the tariff raises to Rs.3.069 per kWh which has to be paid to Adani Green Energy Limited (AGEL). It was reported that the initial offer made during the deal didn’t include BCD on imported solar panels and cells.

In December 2021, The Solar Energy Corporation of India (SECI) had signed agreements with AP to supply 7,000 MW of solar power from AGEL. At that time, the government had not notified 40% customs duty on the import of solar panels.

The duty became effective from April 1, 2022. When SECI informed the same to the AP government, it agreed to pass on the duty to the state.

The current government has to bear the additional burden of Rs. 850 crore, due to this act of Jagan Mohan Reddy.