Adani-Modi association in non-compliance with PPA norms, alleges Gujarat Congress

Gujarat Pradesh Congress Committee chief Shaktisinh Gohil said that a letter was written on behalf of GUVNL to Adani Power Mundra Limited, according to which Adani Power has not handed over the documents despite being paid Rs.13,802 crores over the period of five years

Gujarat Congress has hit out at the state government for not complying with the Power Purchase Agreement (PPA) norms and conditions and alleged that the Bharatiya Janata Party (BJP)-led Gujarat government via Gujarat Urja Vikas Nigam Ltd. (GUVNL) paid crores of rupees to Gautam Adani’s Adani Power Mundra Limited.

Gujarat Pradesh Congress Committee chief Shaktisinh Gohil (Twitter Photo)

Addressing a press conference on Saturday, Gujarat Pradesh Congress Committee chief Shaktisinh Gohil said Adani Power Mundra Limited procured coal but did not furnish the evidence (invoice, documents, etc.) of price bidding and was paid in excess without checks and balances.

Gohil said that a letter was written on behalf of GUVNL to Adani Power Mundra Limited, according to which Adani Power has not handed over the documents despite being paid Rs.13,802 crores over the period of five years.

The letter mentioned that the GUVNL paid an additional Rs.3,900 crore as it was only supposed to pay Rs.9,902 crore and demanded that it should be returned.

According to the PPA signed between the GUVNL and Adani Power, for the coal coming from Indonesia, energy charges would be paid to Adani Power based on its fixed price, said Gohil.

“It was written in the PPA that whatever coal Adani buys, it will give its competitive bid and bill papers to the government, which the government will compare with the international price-fixing circuit,” Gohil alleged.

He added, “But Adani Power did not submit any documents for five years and the government kept paying crores of rupees in the name of energy charges”.

Referring to the Hindenburg report, Gohil said that the Supreme Court committee to revive this and multiple RTIs (right to information) were also filed following which the Gujarat government wrote to Adani Power Limited.

“Had this not happened, Rs.3,900 crore of the Gujarat government would have gone to Adani. This money belonged to the Power Purchase Agreement, so its burden would fall on the citizens of Gujarat,” the Congress spokesperson added.

Hindenburg report, published in January 2023, alleged accounting fraud, stock price manipulation, and improper use of tax havens by Gautam Adani.

Congress’ Chairman media and publicity department, who was also present at the press conference, said, “After the Hindenburg report came and after the kind of pressure, the Congress party and other oppositions raised it in the Parliament and questioned Modi (Prime Minister Narendra Modi) on his association with Adani. After that pressure, the GUVNL has written a letter to Gautam Adani asking him to repay that excess amount paid to him….”