Adani Group Accused of Inflating Coal Import Prices, Impacting Indian Consumers

Investigation Reveals Discrepancies in Coal Import Prices and Overpayment for Electricity

The Adani Group, a prominent conglomerate in India, faces allegations of inflating coal import prices between 2019 and 2021. These allegations have raised concerns about the impact on Indian consumers and businesses, who may have overpaid for electricity.

According to a Financial Times (FT) report, customs documents from Indonesia and India have revealed significant disparities between the import prices declared in India and the export prices from Indonesia. This practice has affected the cost of fuel and electricity generation.

The FT report, published recently, sheds light on this concerning practice. In one instance mentioned in the report, the value of a coal shipment more than doubled during its voyage. The export record indicated a price of $1.9 million, with an additional $42,000 allocated for shipping and insurance. However, upon arrival at Mundra, India’s largest commercial port managed by Adani, the declared import value skyrocketed to $4.3 million.

The investigation also suggests that the Adani Group used little-known trading houses based in Taipei, Dubai, and Singapore, who acted as intermediaries, raising invoices at inflated rates.

Additionally, the report reveals that the Adani Group has been overpaid for electricity supplied to the Gujarat power utility. Records indicate that the utility paid Rs 13,806 crore instead of the correct amount of Rs 9,902 crore.

In response to these allegations, the Adani Group released a statement, accusing a “foreign publication” of attempting to damage its reputation. The group questioned the motives behind these allegations and expressed confidence in India’s transparent and robust regulatory bodies, emphasizing that over-invoicing or price manipulation is unfounded.

The Adani Group contends that the “foreign publication” is recycling and selectively misrepresenting publicly available facts while suppressing judicial decisions. They maintain that the coal procurement process in India is conducted through an open, transparent, and global bidding process, reducing the possibility of price manipulation.

These allegations have raised concerns about the transparency and fairness of coal import practices, prompting ongoing scrutiny.

Rohit Sharma

Rohit Sharma is a seasoned Political Journalist with a deep passion for Indian Politics. With over a decade of experience in the field, he has established himself as a trusted… More »

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