Is the Modi government helping Adani by reducing coal import duty?
We continue to see accusations in the political arena that the ruling BJP government and Prime Minister Modi are greatly aiding the rapid growth of Gautam Adani, the second richest man in India from Gujarat.
Sitaram Yechury, a senior leader of the Communist Party of India (Marxist), has criticized the ruling government of Narendra Modi as a “corporate communal alliance” for reducing duty and agreements on coal imports to help the businessman Adani.
Corporate Communal Alliance pic.twitter.com/bq6nsH4KNI
— Sitaram Yechury (@SitaramYechury) June 17, 2022
Adani’s Australia Coal Mine:
Residents and environmental activists in Queensland, Australia, protested in 2017 when the Australian government approved Adani’s plans to build the largest $ 16.5 billion worth Carmichael coal mine.
In December 2021, Adani began exporting coal extracted from Carmichael coal mines in Australia amid protests by environmental groups. Adani plans to extract 10 million tonnes of coal per year from the Carmichael coal mine.
“In April 2022, India witnessed acute power shortage due to unavailability of coal supplies, with more than 100 million units (MU) of energy shortage on 8 days over the course of the month”, The Economic Times reported.
The Government of India, on May 21, announced a reduction in the excise duty on imported coal from 2.5% to 0% due to the shortage of coal in India.
“Government of India has mandated Coal India to be ready to import 12 million tonnes of coal for July this year to July 2023”, reported Business Standard on June 4.
Subsequently, India’s largest power generating company (genco) NTPC has awarded multiple contracts to import 6.25 million tonne (mt) of coal to Adani Enterprises at a cumulative value of Rs 8,308 crore.
In March, when the coal crisis erupted, NTPC had issued five tenders for importing 5.75 mt of coal, and all the contracts went to Adani Enterprises. The cumulative amount of these tenders was Rs 8,422 crore.
Adani continues to win various contracts for coal thus becoming a monopoly in India when coal demand is considered. This has led to allegations that the ruling Modi government is helping Adani’s coal import business.
Adani Group to start coal export from Australian mine this week
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Headlines: India cuts import duty on coal to 0% from 2.5%