Tamil Nadu cancels tender linked to Adani Group

Chennai: Tamil Nadu Generation and Distribution Company (TANGEDCO) has cancelled its global tender for installation of smart electricity meters in which the Adani Group emerged as the lowest bidder for one of the four packages, weeks after clarifying that it has had no “business relationship” with the conglomerate.

Sources said though Adani Energy Solutions Limited (AESL) emerged as the lowest bidder for installing 82 lakh smart meters in eight districts, including Chennai, Tiruvallur, and Chengalpattu, TANGEDCO felt that the price quoted by the company was “high” and decided to cancel the tender process after negotiations with the company to reduce the price failed.

“The price quoted by AESL to TANGEDCO was higher than Rs 120 per meter per month offered to other states like Andhra Pradesh and Puducherry. This is despite our volume being quite high when compared to other states,” a source from TANGEDCO told DH.

The electricity distribution company also cancelled three other packages of the tender floated in August 2023 to install a total of 3 crore smart meters under the Centre’s Rs 19,000 crore Revamped Distribution Sector Scheme (RDSS) citing “administrative reasons”, according to the corrigendum issued on December 28.

Following Adani’s indictment by a US court in November, Tamil Nadu Energy Minister V Senthil Balaji had said TANGEDCO doesn’t have any “business relationship” with the Adani Group and that the state government entered into an agreement only with the Solar Energy Corporation of India (SECI) for purchase of solar power at a “cheap price".

It is believed that the recent controversies surrounding the Adani Group and its chairman Gautam Adani played a critical role in the cancellation of the tender as the Tamil Nadu government didn’t want to face criticism of favouring the conglomerate.

The decision by TANGEDCO comes weeks after Chief Minister M K Stalin was forced to clarify on the floor of the Assembly that he never met Gautam Adani. He also challenged the BJP and its ally PMK, who asked him to come clear on allegations over his “secret meeting” with Adani, whether they were ready for a Joint Parliamentary Committee probe on the matter.

“I believe it is people’s pressure that forced the Tamil Nadu government to cancel the tender,” Jayaram Venkatesan of NGO Arappor Iyakkam told DH.

The Directorate of Vigilance and Anti-Corruption (DVAC) is probing the alleged coal import scam based on a complaint filed by Venkatesan who alleged that the Adani Group caused a loss of Rs 3,000 crore to TANGEDCO between 2013 and 2016 by supplying poor quality coal.

“Cancelling the smart meter tender is a welcome decision. But what is more important is that TANGEDCO should blacklist Adani Group for its involvement in massive corruption in the import of coal. The DMK government should make Adani accountable for the irregularities and investigate him and his company,” Venkatesan added.

Balaji said the TNEB signed an agreement with SECI, a public sector undertaking of the Union government, for purchase of solar power at Rs 2.61 per unit. He also said the TNEB didn’t sign any direct agreement with Adani Group after the DMK government assumed office in May 2021.

The move by the government also comes after Gautam Adani was indicted by a US court for allegedly promising bribes to Indian government officials between July 2021 and February 2022 following which electricity distribution firms from Tamil Nadu, Andhra Pradesh, Odisha, Chhattisgarh, and Jammu and Kashmir entered into pacts with SECI for purchase of solar power.