Power Play: Inside India's Largest Solar Contract Controversy

The Solar Energy Corporation of India approached Andhra Pradesh for a substantial solar deal, swiftly approved by the state government despite official concerns. The contract with Adani Green has drawn scrutiny, both for its fast approval and alleged corruption. Andhra Pradesh now seeks to suspend the deal amid ongoing legal investigations.

In a surprising move on September 15, 2021, the Solar Energy Corporation of India (SECI) approached the southeastern state of Andhra Pradesh with the opportunity to enter India's largest renewables agreement—a contract that raised eyebrows and drew immense scrutiny due to its massive scale and controversial players involved.

Within days, Andhra Pradesh's cabinet, led by YS Jagan Mohan Reddy, gave a preliminary nod to the deal, which primarily benefits Adani Green, a unit of Gautam Adani's conglomerate. Documents suggest this rapid approval might have overlooked financial advisories urging caution in light of anticipated falling solar prices.

The agreement, its alleged expedited approval process, and subsequent corruption claims have drawn the attention of U.S. prosecutors now indicting Adani and others. Andhra Pradesh is reconsidering the agreement, understanding that continuing with it could significantly strain its budget.

(With inputs from agencies.)