Andhra Pradesh CM Chandrababu Naidu Says Will Honour Adani Contract

Over a month after promising action on allegations of bribery involving the Adani Green Energy Ltd. and the previous YS Jagan Mohan Reddy administration, Andhra Pradesh Chief Minister N Chandrababu Naidu has shifted gears, stating no action can be taken until "concrete proof" emerges.

Speaking to reporters in Vijayawada, Naidu remarked, "We can't back out of contracts unless concrete proof is available. We will have to pay stiff penalties. Concrete action will be taken if charges are confirmed."

This marks only the second time Naidu has addressed the issue publicly since the US bribery allegations surfaced in November. In an earlier statement on the Assembly floor on Nov. 22, Naidu had called the charges "damaging" and pledged to act as more facts unfolded. However, on Tuesday, he emphasised the need for patience, reiterating, "If there is wrongdoing, action must be taken. But we need more proof."

Naidu highlighted how the controversy could potentially tarnish the opposition YSR Congress Party's reputation while underlining his reluctance to indulge in "vendetta politics." "It's a question of credibility. This is the difference between the TDP and YSRCP," he said.

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The bribery accusations stem against the Adani Group by the Securities and Exchange Commission and the Justice Department. They allege that in August 2021, billionaire Gautam Adani met then Chief Minister YS Jagan Mohan Reddy following a refusal by Andhra Pradesh to sign a power supply agreement with the Solar Energy Corporation of India. The filings claim an unnamed state official was offered kickbacks worth Rs 1,750 crore to facilitate agreements favoring Adani Green Energy Ltd.

The deal in question involves SECI's power purchase agreements for 7,000 MW — 4,666 MW with AGEL and 2,333 MW with Azure Power. However, Azure later backed out, transferring its capacity to AGEL.