Can’t cancel deal with Adani sans evidence: Naidu

Hyderabad: Andhra Pradesh chief minister N Chandrababu Naidu has said his government cannot unilaterally cancel solar power purchase agreements signed by the previous administration, despite a US federal bribery indictment against billionaire Gautam Adani and his company over allegations connected to the contract.

Speaking to reporters at his party’s office in Mangalagiri, Naidu, the Telugu Desam Party (TDP) chief, cited legal complexities surrounding the 7,000-megawatt solar power contract signed with the Solar Energy Corporation of India (SECI) during YS Jagan Mohan Reddy’s tenure.

“The state government cannot scrap the contract unless there is adequate proof of irregularities,” Naidu told reporters at his party office. “We have to pay high penalties if we cancel the contracts. Unless there is concrete proof, we cannot take action.”

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The U.S. Department of Justice’s 54-page indictment, unsealed in November 2024, alleges a sophisticated $265 million bribery scheme. Prosecutors claim Adani executives, including Gautam and nephew Sagar Adani, conspired to bribe government officials to secure lucrative solar power contracts.

Andhra Pradesh’s contract is among three specific instances cited in the indictment.

“The U.S. indictment is a golden opportunity to take action against Jagan Mohan Reddy and send him to jail,” Naidu said on Wednesday. “But that is not my policy. I didn’t want to do it just for the sake of political vengeance.”

The opposing YSRCP party defended the original agreement. Party general secretary Sajjala Ramakrishna Reddy argued the deal was thoroughly examined and represented optimal pricing. “Under the then prevailing circumstances, it was the best deal to buy solar power at ₹2.49 per unit, including transportation costs,” Reddy stated.

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Reddy also dismissed the bribery allegations as baseless, drawing a contrast with previous corruption investigations. “Unlike the skill development corporation scam, where there was strong evidence against Naidu’s involvement, there is no such proof in the Adani bribery issue,” he claimed.

On November 22, Naidu made a brief statement in the state assembly confirming possession of the U.S. indictment reports. “We are looking for more evidence,” he said. “Action would be taken if irregularities are found.”