YSRCP chief Y S Jagan Mohan Reddy
Credit: PTI File Photo
Hyderabad: In an interesting revelation, the then YSRCP government proceeded with the controversial Solar Energy Corporation of India (SECI) deal even though Andhra Pradesh power distribution companies (discoms) suggested that manufacturing facilities of the solar power plants be set up in the state rather than in Gujarat and Rajasthan, as suggested by Adani Green Energy and Azure, as it would benefit the state.
Documents with DH showed that the discoms had suggested that the state urge the SECI to check the possibility of setting up manufacturing facilities, which it turned down.
The SECI deal was at the centre of a US court indictment against industrialist Gautam Adani on alleged bribery charges.
The SECI wrote to then state energy secretary on September 15, 2021, offering 7,000 MW of solar energy. On September 16, the state Cabinet — headed by then CM YS Jagan Mohan Reddy, approved the transition and asked the Energy Department and the AP Power Coordination Committee (APPCC) — consisting of the chairpersons of the discoms — to evaluate this proposal.
One of the considerations by the discoms in the APCC report, was: “The SECI may be requested to check the possibility of setting up the manufacturing facilities in the state.”
“Discoms believed that manufacturing facilities for solar plants could generate approximately Rs 3,000 cr in state GST income, and also help the state avoid Rs 1,360 crore in annual transmission losses for 25 years, which comes to close to 80 paise per unit. However, the then government proceeded without considering the discoms’ potential savings,” a top source in the Andhra government told DH.