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New Delhi: The Andhra Pradesh government's request to persist with the 2333 MW power project despite Azure Power 's sudden exit led to the Solar Energy Corporation of India (SECI) seeking the Solicitor General's opinion on 'transferring' the project to Adani group , without a fresh re-tender mechanism, ET has learnt. "In the larger interest of the state, AP has been requesting SECI, to ensure that the committed supply to them be ensured, and same has been emphasised in various meetings with SECI," SECI has stated in its communication to Adani group on the subject on February 23, 2024. SECI went on to seek the opinion of the Solicitor General of India on the same who is learnt to have ruled in favour of the project transfer to Adani group on 'the same terms and conditions'.
The recent US indictment has hinted at Azure group 'secretly influencing' SECI to exit the project and transfer it to Adani group. The 2020 project came under jeopardy with the Azure Power India Pvt Ltd (APIPL) insisting in 2023 on exiting the project and even moving the AP High Court for the same on October 16, 2023, citing Public Interest Litigation (PIL)s filed by TDP and CPI leaders challenging the project tariff. 'Transfer' or re-tender Following AP's requests for a solution, SECI deliberated that a PPA/PSA may be signed with the Adani group-- the other successful bidder in the same bid package -- on the 'same terms and conditions' as with the outgoing Azure group.
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While the Ministry of Power guidelines were found silent on LoA and PPA modification, there were concerns on the changes in capacity, the SECI has recorded in communications to the Adani group. Accordingly, SECI is learnt to have sought the opinion of the Solicitor General of India on "whether it can modify the Letter of Award (LOA)" issued to Azure group, by "cancelling the LoA for breach on the part of M/s Azure and issue supplementary PPA with M/s Adani for such quantum", in keeping with negotiations which had taken place between AP DISCOMs, M/s Adani and SECI and "without rendering a competitive bid process under Section 63 of the Electricity Act, 2003". Solicitor General's opinion "The above can be undertaken through the process of negotiation and without retendering and adopting a new competitive bid process' under the provisions of the Electricity Act of 2003, the SG is learnt to have communicated to SECI.
SECI 'can modify' the LOA earlier issued, provided that the LoA of Adani clearly states that the project will be implemented by Adani on "the same terms and conditions with the revised timelines", the SG is learnt to have said in his legal opinion to SECI. The same must be incorporated in Supplementary Power Purchase and Power supply Agreements to be executed between SECI/AP DISCOMs and Adani, clearly stating '2333MW capacity sourced from Adani in place of APIPl', he added. Alongside, SECI must retain the right to claim, 'consequential damages' from Azure for its 'illegal repudiation of the PPA'.
Following the legal backing, SECI wrote to the Adani group on February 23, 2024 conveying the SG's opinion and its consequent decision to award the additional 2333MW capacity to it- taking it to a total of 10,333 MW for the group. Nominations for ET MSME Awards are now open. The last day to apply is December 15, 2024.
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