Out of way exemption to Adani group to sell power in India- EAS Sarma

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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.

Revive Visakhapatnam Steel Plant in national interest –EAS Sarma
EAS Sarma

 

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.

Out of way exemption to Adani group to sell power in India- EAS Sarma-Photo courtesy-Adani watch
Adani’s Godda power station

 

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.