Andhra Pradesh likely to suspend Adani power deal: Report

Andhra Pradesh might put its power purchase deal linked to the Adani Group ‘in abeyance citing the US indictment’ of the group’s founder Gautam Adani in a bribery case, government sources told Reuters.

The sources also added that southern state would ask the federal government and the Solar Energy Corporation of India to investigate the bribery charges.

There is also a chance for Andhra Pradesh to cancel the power supply project, as the state is “digging into all the internal files” from the previous administration under which the alleged misconduct took place, state Finance Minister Payyavula Keshav had told Reuters on Monday.

The development comes after US authorities framed Gautam Adani and other executives of the group for allegedly paying $265 million in bribes to Indian to to Indian government officials to secure solar energy contracts.

Here are some previous actions by government bodies, firms in the wake of the bribery case: 

Kenya

Kenyan President William Ruto announced the cancellation of two major projects involving India’s Adani Group. The first was the procurement process to expand Kenya’s main airport, while the second was a $700 million energy deal for constructing power transmission lines, previously signed by the energy ministry with an Adani Group subsidiary.

TotalEnergies

TotalEnergies said that it would not make new financial contributions amid a US federal indictment involving the Adani family. “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the French energy company stated.

Market reactions post bribery scandal

Shares of all Adani Group companies ended up to 25% lower on Thursday and  lost ₹2.3 lakh crore in market capitalisation after the Group was framed in the infamous bribery scheme.

S&P, Moody’s and Fitch ratings action against Adani

S&P

Ratings agency S&P cut its outlook on Adani Ports, Adani Electricity and a unit of Adani Green Energy post the US indictment of Gautam Adani and other executives of the group. S&P wrote in its note that the negative outlook and the recent turn of events may restrict funding access for the group companies.

Moody’s

Ratings agency Moody’s has revised the outlook on seven Adani Group companies to negative following the indictment of Adani Group Chairman Gautam Adani and several other group executives by the US SEC and a District Court.

Fitch

Fitch Ratings took rating actions on Adani stocks following the bribery charges and the indictment of certain board members of Adani Green Energy by the US SEC and District Court. The ratings agency put Adani Ports’ long-term foreign currency rating and its US dollar senior unsecured bonds on negative watch.

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