Power capacity transfer to Adani Green: SECI's claim of 'public interest' raises alarm bells in Andhra Pradesh

The US SEC had alleged that the capacity had been transferred in lieu of bribes paid by the Adanis on Azure's behalf, as part of a $265 million bribery scheme involving state government officials.

A submission by the Central government-owned Solar Energy Corporation of India (SECI) to India's electricity regulator claiming that the transfer of 2,300 mega watt of solar capacity from Azure Power to Adani Green Energy was made in larger "public interest" has apparently raised alarm bells in the Andhra Pradesh government headed by TDP's N Chandrababu Naidu.

According to a report by The Indian Express, the Andhra government said that although there are no provisions barring or allowing such transfer of power capacity as per the 2019 tender, but sought a clarification on what comprised "public interest".

India's apex electricity regulator, the Central Electricity Regulatory Commission, had on October 28 this year, asked SECI if the transfer of power capacity to Adani Green was permissible under the tender floated in 2019.

To that, SECI told the CERC that the transfer had been made in larger "public interest" as the Andhra government had been "keen on [capacity] being made available."

The capacity in question was part of the 12,000 MW solar tender floated by the SECI in 2019, which has now come under scrutiny over alleged bribery—charges levelled by the US' Securities and Exchange Commission (SEC).

The SECI had alleged that the capacity had been transferred in lieu of bribes paid by the Adanis on Azure's behalf, as part of a $265 million bribery scheme involving state government officials.

"The end result of these maneuvers—Azure’s withdrawal from and forfeiture of a substantial portion of the Manufacturing Linked Projects and Adani Green’s takeover of nearly all of that portion of the projects—was that Azure transferred significant value to Adani Green, Gautam Adani, and Sagar Adani in partial satisfaction of Azure’s share of the bribes that Gautam Adani and Sagar Adani had paid or promised," the SECI had said in its filings to US prosecutors.

Subsequently, the SECI, in separate submissions in December, stated that the transfer of Azure's power capacity was "not prohibited", IE reported.

"This was particularly when APDISCOMs and Government of Andhra Pradesh were keen on such 2,333 MW being made available and Adani was willing to undertake the additional capacity on the same tariff terms and conditions except commissioning schedule of the projects," the SECI reportedly said.

"It is a settled principle of law that if a thing is not prohibited, there is nothing wrong with adopting the process if it is in public interest," the SECI asserted.

In November, US prosecutors had indicted Adani Group chairman Gautam Adani, his nephew, Sagar, and several others for offering over $265 million in bribes to Andhra government officials.

The bribes, allegedly, were paid after the SECI failed to sign power sale agreements with state discoms.