Could get a shock of Rs 2,800 crore if SECI pact is rejected: Andhra Pradesh minister | India News – Times of India

VIJAYAWADA: The Andhra Pradesh government could face financial implications ranging from Rs 2,500 crore to Rs 2,800 crore if it cancels the power sales agreement (PSA) with Solar Energy Company of India (SECI) without valid justification, Minister of State for Energy Gottipati Ravi Kumar warned on Thursday.
In 2020, AP discoms signed an agreement to purchase 7,000 MW of solar power from SECI to meet electricity needs and renewable energy targets. However, the deal has recently come under scrutiny amid US allegations that Adani Group bribed officials at SECI to secure favorable contracts and benefits 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 government under CM N Chandrababu Naidu is currently weighing its options to scrap the deal while also aiming not to burden citizens. Kumar said the PSA is a legally binding agreement and any move to cancel it without valid reasons could lead to lawsuits and hefty damages.
Sources in the power department said there are no specific allegations against SECI or its officials. The PSA was solely between SECI and the discoms, not with private companies like Adani Group. Still, officials have been instructed to seek legal advice and draw up a list of possible actions, including the possibility of an investigation into the alleged bribery angle.