Out of way exemption to Adani group to sell power in India- EAS Sarma
Kanwar Inder Singh/ royalpatiala.in News/ August 25,2024
Adani Group has been given an out of the way exemption by the Ministry of Power to sell power in India from its export-intended power plant, and this should not be allowed to earn excessive profits and overcharge from domestic consumers , said EAS Sarma former Secretary Power .
EAS Sarma on Saturday wrote to the cabinet secretary that Adani Group’s Godda power plant in Jharkhand has enjoyed enormous financial benefits on the grounds that power from that plant would be exported to Bangladesh. The power project became its own ‘special economic zone’ and was exempted from paying numerous taxes and duties, and was allowed to access cheap government finance. Adani Group had also been allowed to import coal from its Australian coal mine at a price not discovered through competitive bidding.
Within a few days after a change in government in Bangladesh , the Union Ministry of Power amended the relevant rule to permit the power exporter Adani group to sell power to domestic consumers. Any other power company placed in a similar situation would not have perhaps received such a prompt response of munificence.
Sarma cautions that the Adani Group, equipped with all the concessions secured by it from the centre and state governments on the premise that it would export power to Bangladesh should not be allowed to exploit the opportunity to sell power to domestic consumers at prices at which it will earn excessive profits and overcharge domestic consumers.
The Godda power plant had been given the status of a SEZ with associated benefits. The group has also been granted exemption of customs duty on imported coal and power generation equipment, clean energy cess and concessional interest on loans from PFC/REC.
Out of way exemption to Adani group to sell power in India- EAS Sarma. The letter mentions that there have been accusations of the Adani Group and others over-pricing their overseas coal supplied to State power utilities. Against that background, the group should not be allowed to charge excessive tariffs from domestic electricity consumers on the basis of over-priced coal, especially considering that Adani’s Australian coal has not been subject to competitive bidding.
