VIJAYAWADA: Andhra Pradesh govt could face financial implications ranging between Rs 2,500 crore and Rs 2,800 crore if it scraps its power sale agreement (PSA) with Solar Energy Corporation of India (SECI) without valid justification, state energy minister Gottipati Ravi Kumar warned Thursday.
In 2020, AP discoms signed an agreement to procure 7,000MW of solar power from SECI to meet electricity requirements and renewable energy targets. However, the deal has recently drawn scrutiny amid allegations by the US that Adani Group bribed officials at SECI to secure favourable contracts and advantages in renewable energy auctions. Both Adani Group and SECI have denied any wrongdoing.
Former CM YS Jagan Mohan Reddy, during whose tenure the deal was signed, refuted allegations of bribery. The current TDP-BJP govt under CM N Chandrababu Naidu is currently weigh ing its options on scrapping the deal, while also aiming to avoid burdening citizens. Kumar said, the PSA is a legally binding agreement, and any move to cancel it without valid reasons could lead to litigation and hefty compensation.
Sources in the energy department said there are no specific allegations against SECI or its officials. The PSA was exclusively between SECI and the discoms, not with private firms such as Adani Group. Still, officials have been instructed to seek legal opinions and prepare a list of potential actions, including the possibility of a probe into the alleged bribery angle.
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