Mr Reddy said the terms of the deal were favourable for the state.
New Delhi:
Rejecting the US charges of bribery against government officials related to a power deal in 2021, former Andhra Pradesh Chief Minister Jagan Reddy has said the fact that he met Adani Group Chairman Gautam Adani does not indicate any wrongdoing and meeting business people is one of the duties of the head of a state.
Speaking exclusively to The Hindkesharion Friday, Mr Reddy, who is the president of the YSR Congress Party (YSRCP), also said the power deal – signed between the Andhra Pradesh power distribution company and the Solar Energy Corporation of India (SECI), which is a central government-run public sector unit (PSU) – has nothing to do with Mr Adani.
“From what I gathered, my name is not mentioned anywhere, except for the fact that Gautam Adani met me and only after that the power deal was signed… is what is broadly captured,” Mr Reddy said. Asked about the meeting in August 2021, he said, “What is wrong in it? Why only confine yourself to our meeting in August? Since 2019, after I was elected the chief minister, I met multiple businesspeople. That is one of the duties of the chief minister, as the head of the state, to meet businesspeople and address their issues,” he said.
“If somebody wants to invest in Andhra Pradesh, if they are not going to meet the chief minister and get comfort from the fact that the head of the state is proactive, nobody would come and invest,” he emphasised.
The former chief minister pointed out that every state organises industrial summits and competes with each other.
Asked whether he meant that there was no connection between the meeting in August and the deal signed in December, he said, “Absolutely. In fact, from 2019 to the end of my tenure, I must have met Gautam Adani at least five-six times. Why only mention August? I must have met him multiple times before and after that.”
Pressed on why he felt the need to go for a 7,000MW agreement for a 25-year period, he said that was because the terms of the deal were favourable for the state.
“This has got nothing to do with Mr Adani or anybody else, this is one very important aspect that one should never forget. On September 15, SECI, which is a central government entity, wrote to the state government… said they were willing to offer power at Rs 2.49 per unit, which was the lowest price discovered in our tendering process. As a special incentive, we were offered an inter-state transmission charges waiver. This was giving us a saving,” he asserted.
‘Legal Recourse’
The Adani Group has also firmly denied the US government department report alleging bribery for power contracts.
“All possible legal recourse will be sought. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws,” the Group said in a statement.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
