Andhra Pradesh reviewing Adani Power deals; scrapping them is complex, says Nara Lokesh: Report

The Telugu Desam Party-led government in Andhra Pradesh is carefully reviewing power purchase agreements (PPAs) signed by the previous YS Jagan Mohan Reddy administration with the Solar Energy Corporation of India (SECI) to procure power from the Adani Group. However, scrapping these agreements is “challenging” and requires a measured approach to avoid power supply disruptions, according to Nara Lokesh, Minister for Education, IT, and Electronics.

The review takes place amid allegations against Gautam Adani in the United States, where he has been accused of bribing Indian government officials to secure “lucrative solar energy supply contracts.”

In an interview with The Indian Express on Tuesday, Lokesh, who is also the son of Chief Minister N Chandrababu Naidu, stated, “We are scrutinising the terms, conditions, and pricing outlined in the PPAs. However, cancelling them is complex due to legal challenges. Acting hastily could disrupt the power supply, which we want to avoid. This is a lengthy process requiring thorough evaluation before any decision is made.”

Nara Lokesh’s remarks followed statements by Andhra Pradesh Finance Minister Payyavula Keshav, who revealed that his department is reviewing the PPAs and related files signed during the Jagan Mohan Reddy government, an issue he had first raised in 2021 as chairman of the Assembly Public Accounts Committee.