Skip to main content

Adani episode has created concern amongst project promoters in India

By NS Venkataraman* 

The recent Adani episode , when a US based short seller, ( who claims to be a financial research entity), made various allegations against Adani group and which has caused huge furore in Indian stock market and which was widely publicized by Indian media and caused furious national debate particularly amongst politicians, has created considerable alarm amongst the Indian project promoters.
In spite of the wide allegations by US based short seller against Adani group , discerning thinkers are of the view that Adani group has been sinned against rather than sinning.
The fact is that financial institutions who have extended loan to Adani group and equity holders have no complaint to voice against the group. The group has not defaulted in payment of Interest or repayment of loan as per the terms of agreement. The equity share holders have been benefited over the years , as the share value have been at good level.
Recently, when Adani group announced FPO (Follow on public offer ) to the level of Rs.20,000 crore, it was fully subscribed, which indicate the confidence level of the financing institutions in India and abroad, who have responded to the FPO.
Several of projects implemented by Adani group such as in the field of renewable energy or coal mining or port have been operating at reasonably efficient level. In implementing new projects, Adani group enjoys the reputation of strictly adhering to the schedules, except in the cases where the projects have been deliberately blocked by agitators , having vested interests.
Further, watchdogs in India such as Securities and Exchange Board of India (SEBI ) and Reserve Bank of India ( RBI) have not evinced any concern about the performance of Adani group. Major organisations in India like Life Insurance corporation of India (LIC), State Bank of India (SBI) who have invested in Adani group, have not expressed any concern about Adani group.

Living in glass house and throwing stones

The US based short seller Hindenburg , which has expressed concern about Adani group’s performance and style of operations and alleged irregularities, has no particular reputation to lose. It is reported that there are three criminal charges against this entity and it has been banned from commenting about the companies that are registered in the New York Stock Exchange.
This is the case of those of sitting at the glass house and throwing stones at others. Should not those who make such allegations have adequate credibility? Are the shortseller and critics in the same page?
The various charges levelled against Hindenburg against Adani group have been vehemently denied by Adani group and it’s Chairman has assured the financiers and share holders that the performance of the group is reasonably at acceptable standards and the allegations of the short seller are false.
What causes concern is that several critics in India seem to have more faith in the allegations of US based short seller rather than the pronouncements of watchdogs like SEBI and RBI and other organisations in India who have invested in Adani group. In such circumstances, one wonders whether US based short seller and critics in India have similar attitude towards Adani group.
Critics in India are adding more criticism against Adani group than the US based short seller, by stating that the equity holders and financing companies involved with Adani group face calculated risk, since projects of Adani group have long gestation period and proposed projects such as green hydrogen face uncertainty due to high cost of production and so on.
All over the world , several leading organisations are feverishly now working to optimize green hydrogen process technology and scientists are likely to succeed in their efforts. Several world governments including Government of India have promised to provide adequate support for the green hydrogen projects in several ways.
It is not true that all Adani’s projects have long gestation period, as it’s port operations, mining operations, airport operations are ongoing activities.
Adani group is certainly one of the very few organisations in India who target to become a multinational company, as evident by Adani’s coal mining operations in Australia , recent acquisition of port in Israel and so on. One would think that Indian government and people should encourage Adani group in such bold and forward looking global project activities.
The allegations about financial management of Adani group are again not valid.
There are several options for raising finances for the projects and so long the methods are lawful and legal , there should be no complaint. It is common practice in all global organisations to carry out fund transfer between one group company to other group company, if it would be in the larger interest of the projects of the group.
So long as the fund transfer proposals are approved by the duly constituted board of the companies , it should be considered as appropriate and legitimate.

Fear of the project promoters

The Adani episode has created concern amongst the project promoters in India, as to whether this is a new trend of short sellers and blackmailers spreading false allegations against new projects for any ulterior reason.
When such allegations are considered as breaking news by the media who extensively publicise the allegations without any investigation, such developments can upset several meaningful projects.
With the Government of India fixing the target of 5 trillion US dollar economy in the next few years , large capital investments are required by project promoters and funds have to be raised from the market. As more such large projects are likely to be announced, such blackmailers can cause serious problems and impediments for India.
Government of India should find some way to prevent the short sellers and blackmailers from having a field day with the baseless allegations.
Of course, Indian media should also equip itself with greater technical knowledge to assess the projects in appropriate manner , so that the short sellers and blackmailers cannot misuse the media to spread their false and motivated propaganda.
*Trustee, Nandini Voice For The Deprived, Chennai



Abrogation of Art 370: Increasing alienation, relentless repression, simmering conflict

One year after the abrogation by the Central Government of Art. 370 in Kashmir, what is the situation in the Valley. Have the promises of peace, normalcy and development been realised? What is the current status in the Valley? Here is a detailed note by the People’s Union for Civil Liberties , “Jammu & Kashmir: One Year after Abrogation of Art. 370: Increasing Alienation, Relentless Repression, Simmering Conflict”:

Repeated failure to appoint Chief, other commissioners undermining RTI Act

By Anjali Bhardwaj, Amrita Johri* The post of the Chief Information Commissioner of the Central Information Commission (CIC) has fallen vacant with the retirement of Bimal Julka with effect from August 27, 2020. This is the fifth time in the last six years that the Commission has been rendered headless. Four posts of information commissioners are also vacant in the CIC. Currently more than 35,000 appeals and complaints are pending in the commission resulting in citizens having to wait for months, even years for their cases to be disposed, thereby frustrating peoples’ right to know. Since May 2014, not a single commissioner of the CIC has been appointed without citizens having to approach courts. The failure of the government to make timely appointments of commissioners is a flagrant violation of the directions of the Supreme Court. In its February 2019 judgment, the apex court had categorically stated that if the CIC does not have a Chief Information Commissioner or required strength

Ultimate champion in crisis, arguably best ever skipper: Created history in Aussie cricket

By Harsh Thakor  In the history of cricket few cricketers knit and propelled a cricket team or had such profound influence on the game as Ian Chappell. Ian Chappell was responsible for converting a bunch of talented individuals into a world beating side, giving a dramatic turn to Australian cricket. Few cricketers ever led such a renaissance.

BSF's unconstitutional, whimsical order violates life, livelihood of Dalits, minorities

Kirity Roy, Secretary, Banglar Manabadhikar Suraksha Mancha (MASUM), writes to the Chairman, National Human Rights Commission: *** I want to attract your attention towards the illegitimate restrictions on the life and livelihood of the villagers of Paschim Sahebganj village under Dinhata - II Block and Sahebganj police station in Cooch Behar district of West Bengal by the Border Security Force personnel attached with Dharala Border Out Post under 138 Battalion BSF. The population of Paschim Sahebganj village is around 1480, where almost 75 percent of the villagers belong from Hindu Scheduled Caste (Dalit) and 25 percent from minority Muslim backgrounds.The main occupation of the villagers is agriculture. About 260 acres of cultivable land in the village that belongs to the villagers is located outside the border fencing, which is heavily guarded by the Border Security Force (BSF). The BSF regulates the ingress and egress of the villagers to their fields through the fencing gates that a

Largest democracy in world has become weakest at hands of fascist Hindutva forces

Note on “The Nazification of India”, a report released By Justice For All: *** This report, the Nazification of India, compares how Hindutva ideology not only is inspired by Nazis and Fascists of Europe, but their treatment of the Muslim minority closely follows developments that resulted in pushing Jews to the gas chambers. Situation is indeed quite alarming. The report says that the largest democracy in the world has become the weakest at the hands of the fascist Hindutva ideology. India today is ruled not just by a political party the Bharatiya Janata Party (BJP), but its mother organization the Rashtriya Swayamsevak Sangh (RSS). Because the BJP’s government policies are linked to extra-legal enforcement by RSS paramilitary street power, this report has coined the term “The BJP-RSS regime” to reflect their intrinsic links and collaborative relationship. The Nazification of India report marks the anniversary of the Gujarat pogroms of 2002 against Muslims which propelled the BJP-RSS

Varanasi social worker who has devoted her life for the ultra-poor and the marginalized

Passion Vista and its partners profile Founder and Managing Trustee Shruti Nagvanshi as  someone whom women leaders look up to: *** Shruti Nagvanshi, a social worker and human rights activist based in Varanasi, Uttar Pradesh, has devoted her life to reaching out to the ultra-poor and marginalized communities in India. Born in Dashashwmedh, Varanasi on 2 January 1974, she married Dr Lenin Raghuvanshi on 22 February 1992 and has a son, Kabeer Karunik, a Business management Graduate who is also a national level snooker player.

An approach to lake/pond restoration by Ramveer Tanvar, Pond Man of India

By Monami Bhattacharya*, Mansee Bal Bhargava**  Lakes/ ponds are often referred to as an elixir of life, a living ecosystem that adds incremental value to the larger biota. Across the tropical landscape of the country lakes/ ponds are a common sight. Lakes/ponds have always shaped the life and livelihood of those dwelling in and around it. The dependence of the local population on these natural resources of water is noticeable since time immemorial. However, they are fading fast in both rural and urbanscapes from the popular parlance with the advance of humanity. It has been a popular notion to value land more than the waterscape and hence these nurturers of life are under stress in several areas. In many instances, these once beautiful waterscapes referred as the ‘Eye of the Earth’ are mostly now only dilapidated garbage dump yards emitting foul smell with no sign of a healthy ecosystem.

Urban crisis: Impact of erosion of democratic framework on Indian cities

By IMPRI Team  On 13th February, 2023, IMPRI Impact and Policy Research Institute, New Delhi in collaboration with ActionAid Association India arranged a book launch followed by lecture series under the title “India’s G20 Presidency & the Urban Agenda for the Developing Countries”. The event was held in Indian International Centre (IIC) Annex, New Delhi. The event began with the book inauguration session, under the honorary presence of Mr Sitaram Yechury, former Rajya Sabha member and General Secretary, CPI (M), accompanied by Mr Sandeep Chachra, executive director, ActionAid Association India. Session 1 | Book Launch: ‘Cities in Transition’ by Mr Tikender Singh Panwar The book launched was “Cities in Transition”, written by Mr Tikender Singh Panwar, former Deputy Mayor, Shimla and a Senior Fellow at IMPRI. Beginning with brief remarks on his book, Mr Panwar outlined the basic subject matter and the purpose behind writing the book, which he considers as a by-product of his experien

Panchayat funds defrauded: Roads without potholes a fundamental right but not here

Kirity Roy, Secretary Banglar Manabadhikar Suraksha Mancha (MASUM), and National Convenor (PACTI) Programme Against Custodial Torture & Impunity, writes to the chairman, National Human Rights Commission: *** Through this complaint, I want to draw your attention to the plight of the villagers of Nawdapara in the District of North 24 Parganas. The village is situated under the Bagdah Police Station, Bagdah Block and Mama Bhagina Post Office respectively. Nawdapara is a Muslim minority populated village. Indo Bangladesh Border Road (IBBR) passes through the middle of the village. There is a naka checking post of the BSF inside the village and BSF associated with Mama Bhagina Border Out Post, 68 Battalion, ‘B’ Company guard 24 hours in that check post. People have lived in this village since the independence of India. The market is about three to four kilometres away from Nawdapara village. One primary school is situated within the village but the high school is about five to six kilo

Riverscapes: mythology, iconography, folklore and origins amidst rising water problems

By Proshakha Maitra*, Mansee Bal Bhargava** Rivers are not just bodies of water and resources flowing across a landscape, but they are flows supporting a variety of cultural beliefs, values, and ways of life by linking people, places, and other forms of life (Anderson, et al., 2019). Since ancient times, rivers have been the ‘cradle of civilizations’ where the major civilizations of the world developed along the banks of the rivers. Even the earliest known urban culture of the Indian subcontinent, the Harappan (Indus Valley) Civilization developed along the banks of the Indus River that flows from the mountains of Tibet through India and Pakistan. Every river has its tales of mythology, iconography, folklore and origins which are worth knowing, especially in the current times when they are under severe distress of development. Since knowing these intangible aspects of the tangible resource/heritage is crucial to instigate emotional and spiritual connect which may in turn make people an