Adani Sells Low-Grade Coal As Expensive; Doubled Money At The Cost Of Air Quality: Report
Adani Group falsely represented low-quality coal as far more costly cleaner fuel in its trade with an Indian state power utility, according to a report by Financial Times. The media house cited documents obtained by the Organized Crime and Corruption Reporting Project (OCCRP) indicating that Adani “may have fraudulently obtained bumper profits at the expense of air quality.”
The report says that the invoice of an Indonesian shipment of coal that Adani purchased in January 2024 showed it contained 3,500 calories per kilogram, suggesting the use of low-grade coal for power and potentially contributing to burning more of the fuel.
The report underlines that the same shipment was sold to the Tamil Nadu Generation and Distribution Company (Tangedco) as 6,000-calorie coal. With this, Adani is believed to have doubled its money in its transitions with the state. The report claims to have reviewed 22 further shipments in 2014 involving the same parties and says Adani Adani sourced the coal in Indonesia from a mining company famous for its low-calorie output. Adani bought that coal at the price of the low-grade fuel and delivered it to Tamil Nadu for power generation. Notably, the Indian business conglomerate completed the contract falsely representing the coal expensive high-quality fuel.
However, the Indian conglomerate has denied the accusations of increased price in its transactions with the southern state.
It is reported that the coal-fired power plants, which supply about three-quarters of India’s electricity, cause 15 per cent of the country’s man-made emissions of fine particulate matter, 30 per cent of nitrogen oxide and 50 per cent of sulphur dioxide.
Financial Times says after its report on the issue, opposition parties had in 2023 called for an investigation into Adani”s coal transactions. Sunil Dahiya, a Delhi-based analyst at the Centre for Research on Energy and Clean Air says that public health “has definitely taken a back seat in India against the interest of the power sector,” the report cites.
However, Adani Group reportedly remains one of India”s top importers of coal. The new finding is learnt to stir fresh debate on the influence enjoyed by billionaires such as Gautam Adani in India.
India, which has the world”s largest polluted cities suffers from outdoor air pollution significantly. The country is seeing more than 2 million people dying each year due to pollution.
