Misleading Claims by Reporters Collective and Congress on Maharashtra Power Contract

A recent report by the publication Reporters Collective alleges that the governments of Maharashtra and Gujarat, both states under BJP rule, have issued electricity tenders designed to favor the Adani Group. According to the report, the terms of these tenders appear deliberately crafted to align with the capabilities of Adani Power, particularly in terms of power generation requirements. Following the publication, political parties such as the Congress and Aam Aadmi Party, along with prominent journalists like Ravish Kumar, shared these claims.

Congress leader Pawan Khera claimed, ‘BJP’s close ties with Adani Group are on full display as two BJP-ruled states craft identical power tenders, perfectly suited for Adani’s interests. Let’s dive in:

▪️Maharashtra & Rajasthan: Both states issued identical power-purchase tenders, tailored to fit Adani Group’s power generation capacities.

▪️Both states made it mandatory for power producers to supply from both solar and thermal sources—a rare specification. This conveniently aligns with Adani Group’s capabilities, excluding other competitors.

▪️Maharashtra’s 6,600 MW (5,000 MW solar + 1,600 MW coal) and Rajasthan’s 11,200 MW (8,000 MW solar + 3,200 MW coal) tenders were structured to match Adani’s existing and planned projects.

▪️On September 15, 2024, Adani Group secured the Maharashtra contract.

▪️Two weeks after Maharashtra issued the tender, Adani applied for environmental clearance to expand its thermal power plant in Rajasthan’s Kawai, indicating that Adani likely anticipated securing both contracts well in advance.

▪️While Maharashtra allowed installations outside the state, Rajasthan required plants within the state—favoring Adani’s expansion plans.

▪️Rajasthan further narrowed the criteria, excluding those expanding existing solar capacity and favoring new projects—again, benefitting Adani.’

BJP’s close ties with Adani Group are on full display as two BJP-ruled states craft identical power tenders, perfectly suited for Adani’s interests. Let’s dive in:

▪️Maharashtra & Rajasthan: Both states issued identical power-purchase tenders, tailored to fit Adani Group’s power… pic.twitter.com/GL8pj5j6KC

— Pawan Khera 🇮🇳 (@Pawankhera) September 23, 2024

Reporters Collective wrote, ‘Two BJP-governed states looking for power suppliers have crafted strikingly similar bidding criteria that perfectly fit the Adani Group’s power generation capacities and plans, reveal documents.’

Aam Aadmi Party asserted, ‘Mahamanav’s double engine Maharashtra government issued a tender for power supply in September which was awarded to his master, his owner Adani. While electricity is available at the rate of Rs 2 to 3 per unit across the country, Adani is providing this 6650 MW power at the rate of Rs 4 per unit. This robbery of Rs 1 per unit is being done from the pockets of the people of Maharashtra.’

महामानव की डबल इंजन की महाराष्ट्र सरकार ने सितंबर में बिजली सप्लाई का टेंडर निकाला जो उनके आका, उनके मालिक Adani को मिल गया।

जहाँ पूरे देश में 2 से 3 रुपये यूनिट बिजली मिल रही है वहीं Adani ये 6650 मेगा वॉट बिजली 4 रुपये यूनिट की दर से दे रहे हैं।

ये 1 रुपये प्रति यूनिट की… pic.twitter.com/JaQMW7NfBH

— AAP (@AamAadmiParty) September 24, 2024

Ravish Kumar also shared a video on the same topic with similar claims.

Also Read: Adani Group Wins 10 Companies Through IBC Bids; Congress Spreads Misleading Claims

Fact Check 

To gain a comprehensive understanding of the situation, we conducted a Google search using relevant keywords. According to a report published by Indian Express on September 16, 2024, Adani Power won a bid to supply 6,600 MW of renewable and thermal energy to Maharashtra for 25 years. The Maharashtra State Electricity Distribution Company Limited (MSEDCL), which initiated the bid, will procure 5,000 MW of solar power from Adani Power. This power will be supplied from the world’s largest renewable energy park, located in Khavda, in Gujarat’s Kutch district.

The Indian Express further reported: “According to a statement issued by Adani Power Ltd (APL) on Sunday, the 6,600 MW capacity was secured through a competitive bidding process initiated by MSEDCL for the procurement of 1,600 MW of thermal power and 5,000 MW of solar power. Adani Power’s bid for the bundled renewable and thermal energy supply for 25 years was almost a rupee lower than Maharashtra’s current electricity procurement costs. The solar capacity has been allocated at a flat tariff of Rs 2.70 per kWh for the 25-year supply period.”

In addition, a Business Standard report from September 15, 2024, stated: “The Adani Group has secured a bid to supply 6,600 MW of bundled renewable and thermal power to Maharashtra for the long term after its quote of Rs 4.08 per unit outbid competitors such as JSW Energy and Torrent Power.”

Business Standard also noted that Adani Power’s Rs 4.08 per unit bid was lower than JSW Energy’s Rs 4.36 per unit and Maharashtra’s average procurement cost of Rs 4.70 per unit from the previous year. This tariff is about Re 1 per unit lower than the Maharashtra Electricity Regulatory Commission’s (MERC) approved average power purchase cost of Rs 4.97 per kWh for 2024-25. Four companies participated in the tender for the 25-year electricity supply.

A report by Money Control from September 15, 2024, further detailed that Adani will receive a fixed price for renewable energy over the 25-year contract, while the price for electricity produced from coal is subject to escalation. However, this balances out after accounting for a 1.5-2% depreciation. By 2028, Maharashtra is expected to meet 32% of its power demand from solar sources, as per the Renewable Purchase Obligation (RPO).

The fact that Adani Power won the bid due to offering the lowest price compared to four competitors was later corroborated by Money Control and Financial Express.

Regarding Rajasthan, we found a report from the Economic Times published on May 7, 2024, which stated: “Rajasthan Urja Vikas and IT Services Limited (RUVITL) has initiated a bidding process to procure an additional 3,200 MW of coal-based power and 8,000 MW of solar power to meet the growing electricity demand in the state.”

This initiative addresses resource adequacy, in line with guidelines from the Ministry of Power and the Central Electricity Authority, which require sufficient capacity to meet consumer demand without resorting to load shedding. To address challenges posed by aging power stations and coal supply issues, RUVITL secured a coal linkage for 3,299 MW under the SHAKTI Policy, which supports coal allocation for new Power Purchase Agreements. Additionally, RUVITL aims to procure 8,000 MW of solar capacity to meet renewable energy targets by FY 2029-30. The bidding process, which will involve a single tender requiring participants to offer both solar and coal-based capacities, has not yet been completed.

In conclusion, the claims made by Reporters Collective and opposition parties that the power tenders in Maharashtra and Rajasthan were tailored to specifically favor Adani are misleading. This assertion omits three key facts: 1) Four companies participated in the tender for electricity supply. 2) Adani Group’s bid of Rs 4.08 per unit was the lowest, with JSW Energy offering the second-lowest at Rs 4.36 per unit, and Maharashtra’s average procurement cost last year being Rs 4.70 per unit. 3) Adani Group’s tariff is about Re 1 per unit lower than the MERC-approved average power purchase cost of Rs 4.97 per kWh for 2024-25.

Also Read: Congress Push False Narrative Over Adani’s Nairobi Airport Deal, Warns Kenya of Sri Lanka and Bangladesh-Like Fallout