Andhra demand for fee waiver casts shadow on Adani solar deal

NEW DELHI: A deal by Adani Green Energy to provide solar power, which is already subject to a US bribery investigation, faces a further challenge as its main buyer, Andhra Pradesh, has asked for guarantees that transmission charges will be waived, three sources with direct knowledge of the matter said.

The transmission fee, which could increase the cost of the solar power by around 40%, is mandated by central law, meaning waiving it would be problematic.

Since April, Adani has sent many letters urging Andhra Pradesh to begin offtaking power under a 2021 deal, the sources said.

The deal for 7,000 megawatts of solar power was signed between Andhra Pradesh, Adani Green and the Solar Energy Corporation of India, a government intermediary that is meant to ensure parties abide by their contractual obligations.

In its latest letter, Adani said it was ready so far to supply 4,312 MW of solar power to the state, the sources added. They asked not to be named because they were not authorised to speak on the matter publicly.