Congress Accuses Gujarat Government of Excessive Payments to Adani

On Tuesday, the Congress alleged the Gujarat government had paid Rs 8,200 crore in excess to Adani Power towards electricity purchase charges in two years, which it dubbed “favoritism,” a claim dismissed by the power minister who cited the rise in coal purchase cost.

Congress Demand for Accountability and Recovery:

The Congress also demanded that the government recover the “additional Rs 8,265 crore” from Adani and invest it in increasing the capacity of state-run power generators.

Unhappy with the reply, Congress MLA Amit Chavda questioned the government’s decision and demanded a review of the agreement with Adani Power. He also demanded accountability for the excess payments made to Adani.

Minister’s Response and Justification:

Power Minister Kanubhai Desai explained that the rise in coal purchase cost led to revised agreements with power generators, including Adani Power, to adjust for the increased expenses. 

He defended the government’s actions and denied any preferential treatment to Adani.

Congress MLA Amit Chavda reiterated concerns over taxpayer money being used for excessive payments to Adani Power. He questioned why Adani, with access to cheaper coal, did not provide electricity at lower rates.

Minister Desai informed the House about the government’s plans to transition gradually to renewable energy sources to reduce reliance on coal-based power generation.

Demonstrations and Opposition Response:

Congress MLAs staged demonstrations accusing the BJP governments in Gujarat and the Centre of favoring Adani. 

The minister defended the rate hike given the rise in imported coal prices and clarified the share of electricity procurement from Adani Power.

Minister’s Statement to Reporters:

Desai reiterated that the rate hike for electricity was due to the significant increase in imported coal prices and provided statistics to support his argument. 

He emphasized the government’s commitment to transitioning to renewable energy sources.

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