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Adani Group said any suggestion that one of its companies supplied inferior coal is incorrect. “Allegations (in FT report) are false and baseless,” it said.
Report on supply of ‘low quality’ coal false, baseless: Adani Group
NEW DELHI: The Adani Group on Wednesday said any suggestion that one of its companies supplied inferior coal to the Tamil Nadu Generation and Distribution company (TANGEDCO), as compared to the quality standards laid down in the tender and purchase order (PO), is incorrect and asserted that it operates a robust corporate governance framework and is strongly committed to following all laws and regulations in all jurisdictions.
The company was responding to a report published in the Financial Times which alleged that the Adani Group passed off low-quality coal as far more expensive cleaner fuel in transactions with an Indian state power utility. The newspaper cited evidence it had seen and said it throws fresh light on allegations of a long-running coal scam.
“Your allegations are false and baseless, and we strongly reject any suggestion that the Adani portfolio of companies did not act as per regulations,” the Adani group said in a detailed rebuttal of the newspaper report.
“The PO 89 of TANGEDCO was a fixed price contract, won through an open, competitive, global bidding process, wherein Adani Global Pte Ltd was contractually obliged to supply coal to TANGEDCO at a pre-determined price. So, the supply price was market-determined and TANGEDCO had contractually insulated itself from any kind of supply risk, including on price,” the Adani Group said in a statement.
“Any upside or downside due to price fluctuations was to be completely borne by the supplier, needless to say the risk of which was very high due to the volatility in coal prices,” said the Adani Group statement.
The FT report claimed that the documents secured by the Organised Crime and Corruption Reporting project (OCCRP) and reviewed by the newspaper added a “potential environmental dimension” to accusations of corruption associated with the Indian conglomerate.
“They suggest that Adani may have fraudulently obtained bumper profits at the expense of air quality, since low-grade coal for power means burning more of the fuel,” the FT report alleged. The Adani Group said that the suggestion that Adani Global Pte Ltd supplied to TANGEDCO inferior coal, as compared to the quality standards laid down in the tender and PO, was incorrect.
“While it is difficult for us to comment on individual cases due to the sheer volume of data and the elapsed time, not to add the contractual and legal obligations, it is important to note that the coal supplied, irrespective of the declaration by the supplier, is tested for quality at the receiving plant,” said the Adani statement.
Adani Group’s market capitalisation on Wednesday regained $200 billion-mark (Rs 16.9 lakh crore) after its listed firms gained Rs 11,300 crore as investors brushed off the allegations made by the London-based newspaper.
With Rs 11,300 crore gain on Wednesday, the apples-to-airport conglomerate gained Rs 56,250 crore in market capitalisation in the last two trading sessions, stock exchange data showed.
Report on supply of ‘low quality’ coal false, baseless: Adani Group
NEW DELHI: The Adani Group on Wednesday said any suggestion that one of its companies supplied inferior coal to the Tamil Nadu Generation and Distribution company (TANGEDCO), as compared to the quality standards laid down in the tender and purchase order (PO), is incorrect and asserted that it operates a robust corporate governance framework and is strongly committed to following all laws and regulations in all jurisdictions.
The company was responding to a report published in the Financial Times which alleged that the Adani Group passed off low-quality coal as far more expensive cleaner fuel in transactions with an Indian state power utility. The newspaper cited evidence it had seen and said it throws fresh light on allegations of a long-running coal scam.
“Your allegations are false and baseless, and we strongly reject any suggestion that the Adani portfolio of companies did not act as per regulations,” the Adani group said in a detailed rebuttal of the newspaper report.
“The PO 89 of TANGEDCO was a fixed price contract, won through an open, competitive, global bidding process, wherein Adani Global Pte Ltd was contractually obliged to supply coal to TANGEDCO at a pre-determined price. So, the supply price was market-determined and TANGEDCO had contractually insulated itself from any kind of supply risk, including on price,” the Adani Group said in a statement.
“Any upside or downside due to price fluctuations was to be completely borne by the supplier, needless to say the risk of which was very high due to the volatility in coal prices,” said the Adani Group statement.
The FT report claimed that the documents secured by the Organised Crime and Corruption Reporting project (OCCRP) and reviewed by the newspaper added a “potential environmental dimension” to accusations of corruption associated with the Indian conglomerate.
“They suggest that Adani may have fraudulently obtained bumper profits at the expense of air quality, since low-grade coal for power means burning more of the fuel,” the FT report alleged. The Adani Group said that the suggestion that Adani Global Pte Ltd supplied to TANGEDCO inferior coal, as compared to the quality standards laid down in the tender and PO, was incorrect.
“While it is difficult for us to comment on individual cases due to the sheer volume of data and the elapsed time, not to add the contractual and legal obligations, it is important to note that the coal supplied, irrespective of the declaration by the supplier, is tested for quality at the receiving plant,” said the Adani statement.
Adani Group’s market capitalisation on Wednesday regained $200 billion-mark (Rs 16.9 lakh crore) after its listed firms gained Rs 11,300 crore as investors brushed off the allegations made by the London-based newspaper.
With Rs 11,300 crore gain on Wednesday, the apples-to-airport conglomerate gained Rs 56,250 crore in market capitalisation in the last two trading sessions, stock exchange data showed.
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