Indian billionaire Gautam Adani.
| Photo Credit: Reuters
An Indian government agency charged with promoting renewable energy has changed the way it issues power tenders to reduce the risk of corruption after U.S. allegations of bribery in some tenders, said an official with direct knowledge of the matter.
The Solar Energy Corporation of India (SECI) earns commission for linking renewable energy producers with buyers. It was an intermediary in solar power deals involving Adani Group and several states where U.S. authorities have said bribes were paid to unidentified officials between 2021 and 2022.
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The ports-to-power Adani Group has denied the allegations, calling them baseless.
U.S. authorities have not accused SECI of any wrongdoing.
SECI, which selects renewable energy producers for projects through bids and then signs deals with power buyers, said last month it had “no basis so far” to investigate the allegations and that it was “not clear if any of SECI’s covenants have been violated”.
About 75% of SECI’s new bids for renewable power will now be based on specific demand from states instead of the earlier practice of mainly seeking power suppliers first through tenders and then approaching buyers, said the SECI official, who did not want to be named, citing the sensitivity of the matter.
A spokesperson for SECI did not immediately respond to a request for comment outside regular business hours on Monday.
The official said the earlier practice, which used to account for about 90% of the bids, had raised the risk of corruption by power producers seeking to influence buyers in states to sign up to deals even if they did not need the power. The official did not name any companies or give any examples.
The source said SECI had not found any reason to independently investigate any deals it had been part of and that no agency within India or outside had reached out to it.
The allegations against the Adani Group, nevertheless, could temporarily cut foreign investments in India’s renewable sector, said the source, adding that SECI expected tendering to slow down for the rest of the fiscal year that ends on March 31.
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SECI’s target for this fiscal year was to find bidders for 15 gigawatts (GW) of power, but it has managed only about 6-7 GW so far.
India is still more than 10% short of its pledge to add 175 GW of renewable power by 2022. It wants to reach 500 GW by 2030.
Published – December 16, 2024 10:57 pm IST