Andhra Pradesh: Chandrababu Naidu still wrestling with Jagan’s long shadow?

From the ‘legacy’ Adani problem to attempts to scrub out similarities and continuities, how much of the state's political future is guided by a personal rivalry?

Chandrababu Naidu signs on Gautam Adani for data parks in Vizag
Chandrababu Naidu signs on Gautam Adani for data parks in Vizag
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Shivkumar S.

The reverberations of the Adani indictment

It took an investigation by US authorities to expose the murky goings on in the dealings between Adani Green (an Adani group company involved in renewable energy), the Central government and the state of Andhra Pradesh led by the then-chief minister Y.S. Jagan Mohan Reddy. In November, the Securities and Exchange Commission (SEC) of the US formally charged Gautam Adani with bribing officials of the YSRCP government to secure a lucrative deal to supply solar power at rates most independent observers agreed were exorbitant.

At the heart of the indictment is the charge that Adani cheated investors and lending institutions in the US by providing false claims about his group’s anti-graft practices while actively abetting corruption in India.

According to Supreme Court lawyer K.V. Dhananjay, it was not just some superficial violation of procedures but “allegedly defrauding US investors and financial institutions of billions of dollars”. It should be remembered here that the Adani group raised nearly US$ 2 billion through loans and placement of bonds, while paying lip service to US anti-corruption legislation and being quite aware of a federal investigation into his group companies.

The charges created a furore in India. Adani group stock prices dropped sharply before recovering somewhat.

The reverberations are still echoing in Andhra Pradesh, where the N. Chandrababu Naidu government is considering what action to take on the mega 7,000 MW solar power project in the state, what with Adani accused of paying Rs 1,750 crore in bribes to the previous government.

One option is to ask the Solar Energy Corporation of India, the nodal public company involved in solar generation, to end the agreement citing concerns over the integrity of the deal.

A second option is to renegotiate the deal. While it proposes to deliver power at Rs 2.49 per kWh, analysts say that additional costs, including government levies, will take it to Rs 3.8 per kWh; over 25 years, this would mean a power bill of Rs 1.6 trillion.

A third option is to scuttle the whole deal, but this would involve a stiff penalty of Rs 2,100 crore and also set back Naidu’s efforts to woo investments in the state.

Meanwhile, it is reported that Adani Green has not kept its promise of supplying power to the state: 3,000 MW starting in September 2024. It is learnt that Andhra Pradesh will start receiving 1,000 MW only by April 2025. This is well short of the 6,000 MW promised by September 2025.


While delaying supply to the state, Adani has been selling power to the power exchanges at a higher rate, leading to all sorts of justifiable accusations against the group.

As far as Jagan Mohan Reddy is concerned, the solar power bribery allegations are only the latest in a series of charges against him.

Earlier, there was the controversy over the use of adulterated ghee in the making of the famous Tirupati laddus offered to devotees in Tirumala. His government was accused of cutting corners and sourcing cheap ghee with traces of animal fat.

He is also accused of disproportionate assets in a case dating back to 2012. In fact, the Supreme Court recently took the CBI to task for not taking that case forward.

Another case by a TDP MLA had accused him of attempted murder with the help of two IPS officers, including the then CID chief and officer-in-charge of the intelligence wing of the state police.

Jagan Reddy has denied all allegations in all the cases. According to him, everything was above board. As for the Adani bribery allegations, he has sued several news portals for defamation.

Waqf board dissolved

In a bid to overturn another legacy of the previous government, chief minister Chandrababu Naidu has dissolved the waqf board in the state.

A senior official said this was being done to promote good governance and safeguard the waqf properties!

The CEO of the AP State Waqf Board had apparently told the government that it had been "non-functional" for a long time and that there were petitions in court questioning its legality.

There was some controversy over the nominated members — 7 of the 11 members are nominated — and the High Court had issued interim orders stopping the appointment of the waqf board chairman.

It was legal issues that led to the non-functioning of the board, and therefore the government had issued an order to dissolve and replace the board, the official said.

The Naidu government says, however, that it is committed to ensuring the smooth functioning of the waqf board and looking after the welfare of minorities in the state, he added.


AI push with a Google boost

In line with his technocratic style, chief minister Chandrababu Naidu has enlisted US tech giant Google to push artificial intelligence (AI) in the state.

The government has signed an agreement for Google to conduct AI training for industries delivering healthcare and promoting environmental well-being. It was signed in the presence of information technology minister Nara Lokesh, Chandrababu’s son.

The idea, he said, was to facilitate ease of living and the way to do this was to provide basic services speedily with the help of advanced technology. The agreement will focus on collaboration between the two entities to develop an AI-ready workforce and encourage startups based in the state.

Google plans to enrol at least 10,000 people for its Google AI Essentials course, and provide personnel to help train an AI-ready workforce to take the state forward, Lokesh said.

Google will also assist in upskilling programmes for government employees, including Google Cloud certifications and accreditation in subjects such as cybersecurity, data analytics and generative AI.

Eligible startups will get cloud credits, technical training and support to ensure the success of their businesses too.

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