AP Congress Demands Cancellation of Adani Deal, Citing Corruption and Undervaluation

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AP Congress Demands Cancellation of Adani Deal, Citing Corruption and Undervaluation

Andhra Pradesh Congress Demands Cancellation of Power Purchase Agreement with Adani Green Energy

The Andhra Pradesh Congress Party (APCC) has demanded the immediate cancellation of the power purchase agreement (PPA) signed with Adani Green Energy during the previous YSRCP government led by YS Jagan Mohan Reddy. In a letter to Chief Minister Chandrababu Naidu, APCC Chief YS Sharmila alleged that the deal would impose a "massive burden of Rs 1.50 lakh crore on the people of Andhra Pradesh over the next 25 years."

The APCC claims that evidence suggests Reddy received kickbacks amounting to Rs 1,750 crores from the Adani Group in exchange for the agreement. They cite investigations by international agencies and legal proceedings in the United States as proof of these allegations.

The party further alleges that the deal, executed in 2021, has tarnished the reputation of the former Chief Minister and the image of Andhra Pradesh on a global platform. They claim it was executed without proper due diligence, leading to a massive financial burden on the state. The APCC estimates the total cost at Rs 1.50 lakh crore, including Rs 50,000 crore in additional transmission charges.

The APCC also points out that while the Gujarat government secured solar power from Adani at a rate of Rs 1.99 per unit, Andhra Pradesh agreed to pay Rs 2.49 per unit – 50 paise more per unit. With additional transmission charges, the actual cost rises to over Rs 5 per unit. This discrepancy, according to the APCC, indicates a deliberate overpayment, resulting in a heavy financial burden on the people of Andhra Pradesh for the next 25 years.

The APCC alleges that the entire process of signing the agreement was rushed, with approvals granted overnight without public consultation or thorough examination of Adani's agreements in other states. Even the Andhra Pradesh Electricity Regulatory Commission approved the deal without scrutinizing its financial implications. The APCC claims the Chief Minister's Office (CMO) took the lead in bypassing regular procedures to ensure the deal was finalized.

In addition to the PPA, the APCC raises concerns about the sale of the state's 10.45% equity stake in Gangavaram Port to the Adani Group in 2021 for a meager Rs 640 crores, while its actual value was around Rs 9,000 crores. This transaction, according to the APCC, indicates a significant undervaluation, raising suspicions of kickbacks.