'Whoever connecting my name must be a fool': Ex-Andhra Pradesh CM Jagan Mohan Reddy refutes Adani bribery charges

The US court's indictment order on Adani had mentioned a high-ranking official of Andhra Pradesh allegedly involved in the case but it didn't reveal the name.

Hyderabad: Andhra Pradesh former chief minister and YSRCP supremo YS Jagan Mohan Reddy had said that his name was nowhere mentioned in the indictment by a court in the US in the alleged bribery charges against industrialist Gautam Adani and others and said someone has been slinging mud on him. He also strongly defended the agreement his government in 2021 had entered with SECI calling it as 'Historic'.

The SECI agreements with several states including Andhra Pradesh to supply solar power has been at the centre of the controversy in the Adani Gate. As per the US court filings of the total more than Rs 2250 crore of bribes Adani Group a major portion Rs 1750 crore has been allegedly promised to the big wigs in the then Andhra Pradesh government.

In a separate complaint by US's Securties Exchange Commission, it was alleged that after Adani Group chairman Gautam Adani met the then chief minister YS Jagan Mohan Reddy and offered bribes the Andhra Pradesh government had come forward to sign the deal with SECI.

“My name is not mentioned anywhere. Someone is slinging mud at me. If SECI hadn't given us this offer at Rs. 2.49, there wouldn't be a deal, right? Where did this come from? It came from SECI, a central government organization. Only the state government, DISCOMs, and SECI are in this agreement. If someone makes allegations foolishly and stupidly, what can anyone do? There's no mention of incentives being given to me,” Jagan told reporters in Tadepalli of Andhra Pradesh in his first reaction to the Adani Gate controversy.

He said while the agreement was between the Central government represented by SECI and the State government, the question of a third party does not arise and the allegation dragging his name into a controversy and making wild allegations of bribery has no coherence.

When asked about his meeting with Gautam Adani, he said an industrialist meeting a Chief Minister is nothing unusual and the Adani group has various interests in the State and he rubbished the reports of his name being in a report.

“Business meetings with heads are common. Any state meets with businessmen to bring industries. I met Adani a few times during five years as the chief minister. We will issue a Rs 100 crore defamation notice to Eenadu and Andhra Jyothi. We will issue notices to these malicious organizations acting as media faces for the Telugu Desam Party. They are repeatedly spreading lies damaging my honor. They are repeatedly distorting facts about ISTS charges. They are continuously making false propaganda saying Rs. 2.49 plus ISTS charges will apply. All documents related to the agreements are in the public domain. Instead of appreciating me, they are slinging mud at me. The waiver of interstate transmission charges is a huge concession. This is a huge waiver, a huge incentive. This is a historic Power Sale Agreement,” Jagan said.

'Historic agreement with SECI'

He further said that purchasing electricity at the historically low price of Rs. 2.49 per unit is indeed a milestone that will be remembered in history.

“We've seen many governments and Chief Ministers in Andhra Pradesh, but none have achieved what the YSRCP government has done. This is history in the making - an agreement that will stand the test of time. Let's take a look at Chandrababu Naidu's tenure for comparison. While we are purchasing power at Rs. 2.49, the agreements made during Naidu's time are staggering. On average, the Naidu government between 204 and 2019 purchased solar energy at Rs. 5.90 per unit. The APERC tariff order released in 2019-20 shows that during Naidu's tenure, the average unit price for wind power was Rs. 4.63 and for solar, it was Rs. 5.90.Now, when I'm purchasing power at Rs. 2.49 - half the rate Naidu paid - and when the Central Government writes to me offering to supply power at the cheapest rate and waive ISTS charges, how would you have reacted if I hadn't responded? Am I not doing the right thing by responding, while Naidu, who made agreements at such exorbitant rates, is considered good?,” Jagan asked.

He added that an agreement that no one has made before was made by the YSRCP government with SECI during his tenure at Rs. 2.49. Looking back from 2009, it was Rs. 3.70, in 2010 it was Rs. 5.67, in 2011 it was Rs. 4.06, and by the time Chandrababu Naidu came in 2014, it was Rs. 6.99, he added.

“During our tenure, a single Power Sale Agreement at just Rs. 2.49. Notice the difference yourselves. Which rates were during the Chief Minister's tenure. This is a historic decision. We appreciate the central government. The Centre promoted Atmanirbhar to manufacture solar in the country itself. They took steps to prevent imports from countries like China. It doesn't matter to me where SECI brings it from. What matters for our state is that it's coming at a low rate of Rs. 2.49,” he added.

'Cabinet approval after thorough study'

Jagan further explained that on September 15, 2021, a letter was received from SECI and coincidentally, there was a Cabinet meeting on September 16.

“We brought it as a table item for guidance in the Cabinet meeting. In the Cabinet, ministers gave guidance to the Energy Department. The Electricity Department was instructed to study the depths of this proposal. After 40 days of study, referring it to a committee, and after discussions with SECI officials, it was placed as an agenda item in the Cabinet meeting on October 28, 2021. After extensive discussions in the Cabinet, it was ordered to obtain approval from Andhra Pradesh Electricity Regulatory Commission (APERC). APERC gave the green signal to DISCOMs on November 11,” he said.

On December 1, a Power Sale Agreement was made between SECI and the AP Government. SECI, AP Government, and four DISCOMs signed the agreement. There is no third party, he stressed.

“It's a Power Sale Agreement between the Central Government and the State Government. In clause 3.22 of this agreement, it states: 'The Buying Entity shall not be liable for any ISTS charges, Open Access, CTU scheduling charges if any other charges from injection, delivery point, to the receiving substation of the Buying Entity.. Interstate transmission charges waiver'", Jagan pointed out.

He also said that the same SECI has offered power to other states like Chhattisgarh, Odisha, Tamil Nadu but were higher then Rs 2.49 which was offered to Andhra. By accepting the offer the state will be saving Rs 4,400 crore and in 25 years the savings will work out to nearly Rs 1 lakh crore by the waiver of interstate transmission cost, he said.

He added that the TDP friendly media has been talking about power being supplied at a cheaper rate in Gujarat, but the production cost is lower in that region and recently in Gujarat where the price quoted was Rs 2.62 and this is post Covid rate, he said.