Andhra Pradesh to Suspend Adani Power Deal Amid Bribery Allegations

Andhra Pradesh is set to suspend a power purchase agreement with the Adani Group following U.S. indictment of founder Gautam Adani for alleged bribery. The state plans to request federal investigation while clauses in existing agreements allow for contract termination under such transgression.

In a significant development, Andhra Pradesh is poised to suspend a power agreement with the Adani Group, a prominent corporation led by billionaire Gautam Adani. This move comes in the wake of a U.S. indictment accusing Adani of engaging in a $265 million bribery scheme.

The southern state, governed by Chandrababu Naidu, an ally of Prime Minister Narendra Modi, will ask the federal government and SECI to launch an investigation into these charges. If confirmed, this would mark the first state government action following U.S. allegations against Adani.

The power supply contract under scrutiny was set to commence next year. With clauses in place allowing contract termination for serious violations, Andhra Pradesh's decision could impact future bidding processes involving the Adani Group.

(With inputs from agencies.)