The Adani Group Coal Controversy: Allegations of Selling Low-Quality Coal as High-Value Fuel
In a recent report by the Organized Crime and Corruption Reporting Project (OCCRP), the Adani Group has been accused of selling low-quality coal as premium-grade fuel to the Tamil Nadu government-owned power utility, Tangedco. According to the Financial Times, documents reveal that Adani purchased a shipment of Indonesian coal with 3,500 calories per kg but sold it to Tangedco as 6,000-calorie coal at a significantly higher price.
The alleged price manipulation not only resulted in significant profits for Adani but also led to environmental harm due to the burning of substandard coal. Opposition leaders, including Rahul Gandhi, have called for a Joint Parliamentary Committee investigation into the matter, claiming that Adani has looted thousands of crores of rupees through this “coal scam.”
The Adani Group has denied all allegations, stating that the coal quality was independently tested at various stages. The Directorate of Revenue Intelligence (DRI) had initiated a probe into the over-valuation of coal imports nearly a decade ago, but Adani’s legal victories have delayed further investigations.
Despite these controversies, Adani maintains its innocence, emphasizing that they have cooperated with authorities and adhered to testing processes. The ongoing debate raises questions about accountability and transparency in the coal industry.
Published on 23 May 2024, 22:41 IST