Andhra Pradesh Poised to Suspend Adani Power Deal Amid Bribery Allegations

Andhra Pradesh state may suspend a power purchase deal connected to Adani Group after U.S. charges against founder Gautam Adani for alleged bribery. The state plans to request a federal investigation and is set to make the suspension announcement soon. Adani denies the allegations.

Andhra Pradesh state is on the verge of suspending a power purchase agreement with the Adani Group following recent allegations of bribery against the conglomerate's founder, Gautam Adani. State government sources indicate that an official announcement is expected shortly.

The charges, brought by U.S. prosecutors, accuse Adani and seven others of orchestrating a $265 million bribery scheme involving Indian government officials to secure solar power contracts. Among these, $228 million allegedly went to a government official to influence state electricity distribution companies in Andhra Pradesh.

Despite Adani's dismissal of the claims as unfounded, the contract suspension marks a significant move by an Indian state government. The power supply in question was expected to commence next year, but the situation remains tense as Andhra Pradesh seeks a federal investigation.

(With inputs from agencies.)