Adani Group domination in solar energy sector leading to hike in equipment prices
The US Securities and Exchange Commission (SEC) filing alleged that the Adani Group, in collaboration with Azure Power, paid $265 million in bribes to state electricity officials across several states, including Andhra Pradesh, Chhattisgarh, Tamil Nadu, Odisha, and Jammu and Kashmir, between 2021 and 2023. These bribes reportedly secured power supply contracts after the Solar Energy Corporation of India faced challenges finding buyers for the 12 gigawatts of solar electricity awarded to Adani and Azure Power in 2020.
Hyderabad: In the wake of US prosecutors indicting Gautam Adani, his nephew Sagar Adani, and several others for allegedly orchestrating a Rs 2,000 crore bribery scheme to secure solar power contracts in India, now allegations are being made that most of the solar panel manufacturing units and suppliers listed by Approved List of Models and Manufacturers (ALMM) are benamis of Adani Group.
The US Securities and Exchange Commission (SEC) filing further accused the Adani Group of conspiring with Azure Power to pay $265 million in bribes to State electricity officials across multiple states, including Andhra Pradesh, Chhattisgarh, Tamil Nadu, Odisha, and Jammu and Kashmir, between 2021 and 2023. The bribes allegedly facilitated power supply contracts after Solar Energy Corporation of India struggled to find buyers for the 12 gigawatts of solar electricity it awarded to Adani and Azure Power in 2020.
Suppliers and companies involved in solar panel installations claim that most of the solar panel manufacturing units are of Adani Group supported companies. They claim that the maximum benefit of the solar subsidy scheme in the country was going to Adani Group as most of the manufacturing units in the country are directly or indirectly owned by it.
As per Domestic Content Requirement (DCR) norms those who want to avail the subsidy to install solar panels on their houses need to purchase from the list of empaneled Indian manufacturers. The DCR policy mandates that specific projects, especially those associated with subsidies and the CPSU (Central Public Sector Undertakings) scheme, use solar panels that are domestically manufactured, leaving the consumers left with no choice but to purchase solar panels at higher rates from the empaneled companies.
Taking advantage of the norms, Adani Group and other manufacturers are increasing the prices of solar panels to such an extent that consumers have to shell out more than the panels available in the open market. For example, the cost of installing a 5 kw solar panel on residence will be about Rs. 2.8 lakh if you purchase the panel directly from the market. However, if purchased through the DCR manufacturing units, it will cost Rs. 3.2 lakh, which is much higher than the market price.
Many solar panel suppliers in Telangana claimed that the Adani Group was dictating government agencies and quoting higher prices for solar panels, putting additional burden on the consumers.
Adani Solar is one of India’s top solar panel manufacturers. It is part of the larger Adani Group. This conglomerate is well-known for its massive presence in infrastructure, energy, and other key sectors.
Taking advantage of its huge presence in the solar energy sector, Adani Group was influencing the market according to its advantage.
