Taking an important decision, the state government has approved the commissioning of a 300 MW Solar Power Supply Agreement (PSA) between Adani Green Energy Limited (AGEL) and Solar Energy Corporation of India (SECI).

The order, issued on February 26, 2026, will allow for the scheduling and offtake of power. The move comes at a time when the company has been under a cloud of bribery allegations for the last 15 months.

Conditional Approval and Financial Stakes

However, a special condition has been added to this approval. The state government will not pay the ISTS (Inter-State Transmission System) charges and damages incurred up to the periphery of Andhra Pradesh.

This is probably a step taken to reduce the financial burden of the state. The state government had been looking into the financial implications of the cancellation of the agreement for some time and alternative strategies.

Legal storms and regulatory investigations

This development comes at a time when Adani Green Energy (AGEL) is facing serious legal scrutiny. The US Securities and Exchange Commission (SEC) filed a civil case against Gautam Adani and his nephew Sagar Adani in November 2024 last year. It is alleged that they resorted to bribery to get power purchase rates at above-market rates. Due to this, the Norwegian Sovereign Wealth Fund excluded AGEL from its portfolio on February 26, 2026, citing 'serious corruption'.

AGEL maintains that it is not a party to these proceedings and that the company has no allegations. The charges are related to a September 2021 note offering that raised $175 million from U.S. investors.

The Indian stock exchanges have also sought clarification from AGEL on the news related to these SEC proceedings.