Adani bribery accusations: RP Gupta, Chairman and Managing Director (CMD) of Solar Energy Corporation of India (SECI), on Thursday said the agency was not involved in any wrongdoing in the Adani case. The Solar Energy Corporation of India (SECI) is the nodal agency for implementing renewable projects in India.
U.S. prosecutors on Thursday charged billionaire Gautam Adani with participating in a scheme to pay a $265 million bribe to Indian officials in exchange for favorable terms in solar power contracts.
« There is nothing against SECI that SECI did anything wrong. It is nowhere. There is no mention of any wrongdoing or impropriety on the part of SECI, » he said. -he declared while responding to questions from PTI on developments related to the Adani affair.
SECI holds a Category I Power Trading License, which enables it to operate as a tier one power trader across India. The company acquires power from approved developers through its tenders and supplies it to purchasing entities such as DISCOMs through long-term Power Purchase Agreements (PPAs). term and electricity sales agreements (PSA).
According to the document filed by U.S. prosecutors, Solar Energy Corporation of India Ltd (SECI), the entity that initially awarded the manufacturing-related solar energy bid, has finalized sales agreements with the Andhra Pradesh, Odisha, Chhattisgarh and Tamil Nadu between July 2021 and December 2021.
The legal charge also mentions Azure Power, a New Delhi-based company, which had won a similar tender for the supply of 4 GW.
However, when Azure Power was unable to provide its share of the bribes paid to states for the costly purchase of electricity, Adani forced the company to forfeit part of its contract. Subsequently, Adani took over this segment of the contract through SECI.
On his plans for further action, Gupta said: « There are no allegations against us. It is only against the state governments…so those who have allegations against them, it is up to them to take action. »
What happened in 2019
The entire scenario dates back to the year 2019 when SECI successfully concluded the bidding process for a ground-breaking combined tender covering 12,000 MW of solar power generation and 3,000 MW of manufacturing of solar panels. Adani Green and the American company Azure Power became the winners of this historic tender.
Despite its victory, SECI struggled to finalize power supply agreements (PSAs) with state-owned power distribution companies (DISCOMs) due to soaring power prices. Consequently, illicit payments were made to Indian government officials to facilitate the signing of PSA agreements with state DISCOMS. In the absence of these crucial agreements, SECI was unable to sign power purchase agreements (PPAs) with Adani Green and Azure Power.
According to the US court, SECI’s inability to find buyers jeopardizes the expected profitability of the LOAs and the associated revenues for both companies. The court also said that individuals involved in the project had gone to considerable lengths to illegally influence government officials to persuade state-owned electricity distribution companies to enter into PSAs.
US prosecutors alleged that Gautam Adani personally met with an undisclosed Andhra Pradesh government official to facilitate the signing of a PSA between SECI and Andhra Pradesh state power DISCOMs, with a pot- alleged wine loss of around Rs 1,750 crore.
The mega solar agreement
In June 2020, Adani Green Energy Limited and another renewable energy company listed on the New York Stock Exchange won contracts from the Solar Energy Corporation of India. Adani Green Energy has claimed to have secured “the world’s largest solar prize” with a $6 billion investment in solar power. Over a 20-year period, it was expected to generate more than $2 billion in after-tax profits. Adani Green Energy Limited announced that it has won a unique manufacturing-related solar agreement from the Solar Energy Corporation of India (SECI).
“As part of this award, AGEL will develop 8 GW of solar projects as well as a commitment that will see Adani Solar establish 2 GW of additional solar cell and module manufacturing capacity. This award, the largest of its kind ever, globally, will require a one-time investment of Rs 45,000 crore (US$ 6 billion) and will create 400,000 direct and indirect jobs. It will also displace 900 million tonnes of carbon dioxide. for life,” the company said in a press release.
In the press release, Gautam Adani said, “We are honored to have been selected by SECI for this historic solar award. In today’s world, climate adaptation cannot be considered independently of economic development priorities and job creation as well as decarbonization must be simultaneous objectives… The fact that renewable energy will become the cleanest and most economical fuel in the world is an inevitability. and the Adani Group intends to play a leading role in this journey. This award is another step in our country’s climate change promise to the world and also helps implement our country’s Atma Nirbhar Bharat Abhiyan (India Self-Reliance Agenda).
(With contributions from the agency)
