Controversy Shrouds Andhra Pradesh's Massive Solar Contract with SECI

Andhra Pradesh's government is under scrutiny for rapidly approving a sizable solar energy deal with SECI, where 97% of the power is to be sourced from Adani Green. U.S. prosecutors allege a bribery scheme was involved. The deal's economic implications and approval speed have sparked controversy.

The Solar Energy Corporation of India (SECI) presented Andhra Pradesh with a substantial solar energy contract on September 15, 2021, catching the state government by surprise. Despite previously stated goals focusing on other renewable sources, the state expedited approval amidst transparency concerns.

Documents revealed the Adani Group, led by billionaire Gautam Adani, as a key supplier for the $490 million deal. This development coincided with U.S. prosecutors' allegations of a bribery scheme involving Andhra Pradesh officials, stirring unease about the procurement process.

Political leaders approved the contract quickly, overruling financial and energy advisories and sparking claims of fiscal burden. Adani Green confirmed delays to energy supply, with critics citing potential overpayments. A suspension decision looms as scrutiny over the contract intensifies.

(With inputs from agencies.)