The chandrababu naidu government of andhra pradesh is considering options related to holding the power purchase agreement (PPA) related to adani Green Energy. The state government is considering these options after the US Justice Department's indictment following allegations of bribery to obtain contracts for solar projects.
ET quoted sources in the andhra pradesh government as saying that the state government is considering writing a letter to cancel the power purchase agreement with Solar Energy Corporation of india adani Green Energy. Along with this, the state government is also considering recommending a central agency investigation into the entire matter. Other options being considered include the formation of a cabinet sub-committee to investigate the allegations of bribery and for the time being the power supply agreement with the Solar Energy Corporation of india should be put on hold.
The third option is to completely scrap the power supply agreement. Sources said the state government is pushing for this option in which a letter is written to the Solar Energy Corporation of india and it is asked to cancel the power supply agreement. Under this power purchase agreement, the andhra pradesh government has to buy 7000 MW solar power from the Solar Energy Corporation of India. The US authority has accused adani Group chairman gautam adani and seven others of paying $265 million in bribes to officials of Odisha, tamil Nadu, Chhattisgarh, andhra pradesh and the Union Territory of kashmir - SRINAGAR/JAMMU' target='_blank' title='jammu and kashmir-Latest Updates, Photos, Videos are a click away, CLICK NOW'>jammu and kashmir in india to secure solar projects during 2021 to 2022.
The two companies which are embroiled in controversies in this entire matter are adani Green and Azure Power, which were issued letters of Award in june 2020. These companies had signed a power purchase agreement with the Solar Energy Corporation of India. However, the Solar Energy Corporation of india could not find a discom to buy electricity from these two companies because the electricity rates were very high. The US authority has alleged that after this, bribes were given to state government officials, after which the state discoms agreed to buy electricity and then a power purchase agreement was signed with the Solar Energy Corporation of India.
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