Andhra Pradesh's Controversial Adani Solar Contract Under Scrutiny

Andhra Pradesh signed a large solar contract with SEC, primarily involving Adani Green, overriding finance and energy advice. The deal faces scrutiny amid allegations of bribery linked to Adani. Concerns arise over financial strain and potential overpayment due to the contract’s terms. State officials are reassessing the agreement.

In a surprising move, Andhra Pradesh inked a significant solar energy deal with the Solar Energy Corporation of India (SECI), largely benefiting Adani Green, despite contrary recommendations from its own energy and finance departments. Documents reviewed by Reuters reveal the state's decision-making bypassed typical advisory processes.

The speedy approval process, lasting just 57 days, is now under the microscope of U.S. prosecutors, who have charged the Adani Group and others with corruption. Allegations suggest that substantial bribes were offered to secure the lucrative contract, raising questions about the integrity of the deal.

While the former Chief Minister YS Jagan Mohan Reddy denies any wrongdoing, concerns persist regarding the financial implications for Andhra Pradesh, as the state faces possible overpayment issues. Officials are considering halting the agreement amid these serious allegations.

(With inputs from agencies.)