Adani Green Energy’s controversial 7 GW manufacturing-linked solar power project to be set up in Andhra Pradesh has finally seen a ray of hope. The project was facing trouble due to regulatory uncertainty over the transfer of 2.3 GW of additional capacity from Azure Power to Adani Green. The project is also part of the investigation being conducted by US agencies on allegations of bribery.The Central Electricity Regulatory Commission has refused to intervene in the issue of the transfer of agreements. The commission said that it falls under the scope of tariff regulation of the Electricity Act, 2003. The regulator said that the right to transfer assets lies with the agency allocating the project. The project has been allotted by the Solar Energy Corporation of India (SECI). Originally, a 2.3 GW power purchase agreement was signed with Azure Power, but the company abandoned the project. Later, SECI transferred these agreements to Adani Green Energy. This will not require further regulatory approval for the 7 GW project.The project came under controversy after bribery allegations involving Adani Group chief Gautam Adani. The indictment document in the US mentions the then Andhra Pradesh government as the main bribe beneficiary. In a 23-page document, the Central Electricity Regulatory Commission said the matter did not fall under its jurisdiction. The decision came after a petition filed by SECI, which said it took the decision following a request from Andhra Pradesh distribution companies.Out of a total of about 7 GW, 4.6 GW was allocated to Adani Green and 2.3 GW to Azure Power. SECI had signed separate power purchase agreements with both companies, which were approved by the Central Electricity Regulatory Authority in April 2022.After Azure backed out of the deal, SECI signed a revised power sale agreement with Andhra Pradesh distribution companies in December 2023 in which Azure’s share was transferred to Adani Green. Only after this was the regulator approached for approval of this agreement. The commission said that the tariff for the project was already approved, so the application to approve it again is not valid. Talking on this topic, Sneha Thard, finance analyst at a Big 4 firm, said, “According to the original tariff petition, Andhra Pradesh had signed for 7 GW capacity at the rate of Rs 2.42 per unit. SECI had signed a power purchase agreement with Adani Green’s multipurpose unit for 4.6 GW on December 14, 2021, and with Azure for 2.3 GW on December 16, 2021. The current order comes at a time when the Trump administration has directed the Justice Department to ban prosecution of Americans accused of bribing foreign government officials while trying to obtain or retain business in various countries through an executive order. Such steps restrict American businesses and harm them competitively.”
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