'Meeting Adani not out of the ordinary': Jagan says his name not in US indictment

Amaravati: Days after the US Securities and Exchange Commission accused the Adani Group of bribing former Andhra Pradesh CM YS Jagan Mohan Reddy, among others, to the tune of $200 million (Rs 1,750 crores), the YSRCP chief stated that his name was not mentioned anywhere in a US court’s indictment on the matter.

On Thursday, he addressed the press in Tadepalli, to disclose the solar project deals between SECI and AP Discoms, where he clarified that there was no third party in the power purchase agreement with Solar Energy Corporation of India Ltd (SECI).

Adani meeting me is not out of the ordinary, says Jagan

“Gautam Adani meeting me is not something out of the ordinary. He would have met me several times during my five-year regime. He has ongoing projects in Andhra Pradesh. It (bribery charge) is all hearsay and nobody has said that I have taken or somebody has taken (bribes),” said YSRCP chief YS Jagan Mohan Reddy on allegations of payment of bribes to Andhra government officials during his tenure.

Addressing the allegations publicly for the first time after the controversy broke out, Jagan said “Nowhere does it mention that incentives were offered to me because there is no way anybody can offer incentives to me, first of all. Businessmen meeting heads of the States is not unusual. This, in fact, is an ordinary practice.”

‘Power sale agreement was at cheapest price’

In a PowerPoint presentation, Jagan showed documents where the power procurement of 7,000 MW was approved by the AP Electricity Regulatory Commission in November 2021, after which the Power Sale Agreement (PSA) was signed on December 1, 2021, between SECI and AP Discoms.

Jagan said that the power sale agreement was between SECI and the State government at the cheapest price of Rs 2.49 per unit.

Giving details of the power sale agreement, Jagan said, SECI has offered to supply 9,000 MW of power to the State at Rs 2.49 per unit and would waive inter-state transmission costs and 3,000 MW would be supplied in September 2024. This was a bumper offer as it was the cheapest price the State has ever had and we accepted it after following the due procedures.

“We received the letter from SECI on September 15, 2021, which was discussed in the Cabinet and sent to an expert committee, which gave its suggestions after 40 days of study and then the matter was finalised in the scheduled Cabinet meeting in December. The same SECI has offered power to other states like Chhattisgarh, Odisha and Tamil Nadu but were higher than Rs 2.49 per unit which was offered to us,” said Jagan.

According to Jagan, by accepting the offer the State will be saving Rs 4,400 crores and in 25 years the savings will work out to nearly Rs 1 lakh crores by the waiver of interstate transmission cost.

How can Adani be involved?, Asks Jagan

When asked if third parties like Adani were involved in the deed, Jagan said, "How can he be involved? The origin is SECI's letter. Had SECI's letter not come to me, had SECI not given the cheapest power offer that the state has ever procured, none of these things would have happened. It originated with SECI and It is Central Government's understanding with State Government. This is where the story begins and this is where the story ends."

Jagan lashes out at CM Naidu

“Chandrababu who speaks of wealth creation had agreed to buy power at an average price of Rs 5.90 per unit, while we agreed to buy it for Rs 2.49 per unit which will help the farmers in getting nine hours of free power and increase their standard of living. The TDP-friendly media has been talking about power being supplied at a cheaper rate in Gujarat, but the production cost is lower in that region. Recently, in Gujarat, the price quoted was Rs 2.62 and this is post Covid rate,” he said.

Defamation case against vernacular dailies

Lashing against the reports coming about him in some vernacular dailies, Jagan said, “I would be serving defamation notices to Eenadu and Andhra Jyothi, who are working for the TDP, for distorting the facts and publishing stories. I will sue them for Rs 100 crores.” Jagan asked them to post an apology within 48 hours.

What are the allegations in the Adani bribery case?

Adani Group chairman Gautam Adani, India’s second-richest man, and seven others, including his nephew Sagar Adani, have been charged with paying bribes to unidentified officials of the State governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning a profit of more than USD 2 billion over 20 years.

The Adani Group in 2021 won a bid to supply 8,000 megawatts (8 GW) of power generated using locally manufactured solar cells and modular plants but could not meet the price expectations of the State governments buying such electricity.

Adani is alleged to have met the then Andhra Pradesh chief minister YS Jagan Mohan Reddy in 2021, following which the State government agreed to buy 7,000 MW of power. Andhra Pradesh officials were paid at the rate of Rs 25 lakh per MW, totalling Rs 1,750 crores (USD 200 million) for the 7,000 MW the State ended up purchasing.

According to the indictment by the US court, prosecutors claim that the Adani Group concealed this transaction from the US banks and investors while raising billions of dollars for its renewable energy projects. The renewable energy company is accused of raising over $3 billion in loans and bonds during this period by making ‘false and misleading statements’.