On Wednesday, the Congress party renewed its demand for a Joint Parliamentary Committee (JPC) investigation into the Adani issue, alleging that the Gujarat government is aiding Adani Ports in securing a monopoly over the state’s port sector.
Allegations of Favoritism in Gujarat’s Port Sector for Adani:
Congress General Secretary Jairam Ramesh criticized the Gujarat government for allegedly favoring the Ports. He explained that the government grants private ports a 30-year concession period under the Build-Own-Operate-Transfer (BOOT) model, after which ownership is transferred to the state. According to Ramesh, Adani Ports currently controls Mundra, Hazira, and Dahej ports based on this model.
Ramesh claimed that, ahead of the 2024 Lok Sabha elections, Adani Ports requested the Gujarat Maritime Board (GMB) extend the concession period by another 45 years, making it 75 years. He argued that this request exceeded the permissible period of 50 years, yet the GMB hurriedly pushed for the extension without approval from its board, leading to the return of the file.
Gujarat Maritime Board’s Initial Recommendation:
Initially, the GMB recommended that the Gujarat government protect its revenue interests by inviting bids from other operators or renegotiating the financial terms with Adani after the 30-year concession period. However, Ramesh alleged that pressure from influential parties led to a revision of this decision, ultimately favoring the firm by recommending an extension without competitive bidding or renegotiation.
Ramesh warned of serious consequences if Adani Ports secures a monopoly over Gujarat’s port sector. He argued that this would harm market competition, drive up consumer prices, increase valuation, and lower Adani Ports’ borrowing costs. Additionally, by not opening the process to competition, the Gujarat government stands to lose significant revenue.
In another statement, Ramesh accused the government of allowing an Adani firm to sell electricity generated in Jharkhand—originally intended for export to Bangladesh—within India. He criticized the speed at which this permission was granted, alleging favoritism towards Adani.
Response to Hindenburg Research’s Allegations Against SEBI Chairperson & Adani:
The Congress party has consistently targeted the government following the sharp decline in Adani Group stocks after U.S.-based Hindenburg Research accused the conglomerate of fraudulent transactions and share-price manipulation. The Group has denied these allegations, asserting compliance with all legal and disclosure requirements.
The controversy deepened when Hindenburg Research alleged that SEBI chairperson Madhabi Buch and her husband were involved in offshore funds connected to the Group. Both denied the allegations, with the Group dismissing them as malicious and manipulative.
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