Tamil Nadu cancels Adani's smart meter tender over high costs
What's the story
In a setback for the Adani Group, the Tamil Nadu government has canceled a global tender for smart meters. The Dravida Munnetra Kazhagam (DMK)-led administration canceled the tender citing high costs.
Adani Energy Solutions Ltd (AESL) was the lowest bidder for one of the four packages.
The packages were to be installed as part of a plan to install 8.2 million smart meters in eight districts, including Chennai and Chengalpattu.
Bid rejection
Adani's bid deemed 'unacceptable' by Tangedco
The project fell under the Centre-funded ₹19,000 crore Revamped Distribution Sector Scheme (RDSS).
Tamil Nadu's power generation and distribution company Tangedco found AESL's prices "unacceptable despite negotiations."
The quoted price was more than ₹120 per meter per month than other states like Andhra Pradesh.
Tangedco canceled all four tenders issued in August 2023 for "administrative reasons."
The government plans to reissue these tenders soon.
Legal troubles
Adani Group faces legal challenges in the US
This comes after Gautam Adani faced legal challenges in the United States. In 2024, US prosecutors charged him in a $265 million bribery scheme involving Indian officials for solar power contracts.
The Adani Group has denied these allegations as "baseless" and plans to pursue legal recourse.
In November 2024, the group refuted these charges in filings with stock exchanges.
Political controversy
Tender cancelation amid political controversy in Tamil Nadu
The tender cancelation comes amid a political controversy in Tamil Nadu.
Opposition parties alleged a "secret meeting" between Chief Minister MK Stalin and Gautam Adani in July 2024.
Stalin denied the claims saying, "Adani did not come to meet me. I have not met Adani either."
The allegations came after Adani was indicted by a US court over bribery charges involving solar energy contracts projected to generate over $2 billion in profits over 20 years.