Adani Power Under Pressure After Report Reveals Andhra Government To Abandon Deal With Company

The Adani Group's season of trouble only seems to be getting thicker than smog in Delhi. Now, after the Telangana government's decision to reject a Rs 100 crore donation to the Youth India Skills University, another government has reportedly put their partnership with the company on hold.

After Telagana, Andhra Put Adani On Hold

As per a Reuters report, the Andhra Pradesh government headed by BJP-ally and TDP's N Chandrababu Naidu is considering scrapping a power deal with the Ahmedabad-based conglomerate's power arm.

Talking to Reuters, the state's Finance Minister Payyavula Keshav said, "We will also examine what can be done next, like is there a possibility to cancel the contract ... state government is looking into this issue closely."

Following this development, the shares of the Adani Power appear to have been impacted by the development.

Adani Power Shares Dip

In the early hours of the day's trade, Adani power shares dipped significantly, dropping by over 2 per cent. However, the prices established as the day progressed.

At the time of writing, the declined had reduced significantly. The Adani Power shares were trading in red, with a decline of 0.69 per cent or Rs 3.10, after opening at Rs 450.30, compared to the previous day's close of Rs 446.65 .

US Indicts Adani and Co.

The Adani group companies and their shares have under pressure for the past week, and Adni Power, along with Adani Green Energy have been under the pump, in particular.

It was last week, when the tide of misfortune hit the Adani group, when a US Federal court indicted Gautam Adani and seven others, including his nephew, Sagar Adani.

The US prosecutors alleged Adani of bribing Indian official in different states to procure renewable energy deals. The alleged mass bribe is reported in excess of USD 250 million or Rs 2,100 crore.

The Adani Group on its part has banished these allegations, and called them baseless.