Adani's Solar Deal in Andhra Pradesh Faces Scrutiny Amid Bribery Allegations

New Delhi, India: In September 2021, the Solar Energy Corporation of India (SECI) proposed India's largest renewable energy deal to the Andhra Pradesh government. Despite limited need for solar power in the state, Chief Minister YS Jagan Mohan Reddy's cabinet approved the deal within just 57 days, with over $490 million allocated annually, 97% of which went to Adani Green, the renewable arm of Adani Group.

This rapid approval raised concerns about the financial implications, especially as solar prices were expected to decline. Scrutiny intensified after U.S. prosecutors indicted Adani and several executives in November 2024, accusing them of orchestrating a bribery scheme to secure solar power contracts in Andhra Pradesh. Prosecutors claim $228 million was offered to an unnamed official to influence the state’s electricity companies to purchase power from Adani Green.

In response, the Andhra Pradesh government is reviewing the deal and considering legal action, including potential cancellation. This case underscores the need for transparency in public procurement and highlights the challenges of ensuring ethical governance while pursuing rapid renewable energy development.

As investigations continue, this case could affect future projects and investor confidence in India's renewable energy sector.