Rajeev Kumar - Adani-Modi nexus to cost 23,625 cr

By Dilip -
Over the past seven years the Narendra Modi government has entered into several dubious agreements in the realm of the energy sector which were tailor-made to provide astonishingly high profits to the Gautam Adani promoted power producing companies. This story analyses one such decision that will impose a heavy financial burden on the people of Gujarat even as Adani will walk away with an excess profit of Rs 23,625 crores over the next 25 years.   
In 2006, when Gujarat was in dire need of power the Gujarat Urja Vikas Nigam Limited (GUVNL) decided to call on private companies to produce 3000MW electricity for the state. It signed two Power Purchase Agreements (PPAs) with the Adani group for production of 1000MW each and the rate at which the electricity was to be purchased was decided at Rs 2.89 per unit and Rs 2.35 per unit respectively. In the first case, the electricity was to be produced using imported coal while in the second it was to be produced using a mix of imported coal and coal mined in the country. However, just before the deal with Adani, GUVNL had signed an agreement with the Coastal Gujarat Power Project, a Tata Group company, for purchasing power at the rate of Rs 2.26 per unit, in this case too, imported coal would be used to produce electricity. This higher rate of purchase from the Adani group has cost the state a loss of Rs 1347 crore in the past two years, and over a period of 25 years a staggering loss of Rs 23,625 crore.
The Narendra Modi government’s decision to pay a higher price to the Adani group is nothing short of a scam. All the more, when smaller producers are ready to supply electricity at the rate of Rs 2.20 per unit, a much more competitive rate. Why this largesse towards the Adani group?
Gulail sent detailed questionnaires to Adani and GUVNL on this issue. Both parties failed to respond.
Arjun Modwadia, an ex-MLA from Porbandar in Gujarat had this to say, “There have been back-channel deals between Adani and Narendra Modi. On the one hand land was bought at cheap rates from people in Mundra and given to Adani to set up its projects and on the other despite all the subsidies the power is bought from them at higher prices. The fact is that the Gujarat government is working in collusion with the Adani group.”
Let’s consider the implications of this deal with the Adani group. As per the first agreement with Adani Power Limited, the supply of 1000MW is to be done at the rate of Rs 2.89 per unit while the agreement with the Coastal Gujarat Power Project requires it to supply 600MW power at the rate of Rs 2.26 per unit – a difference of 63 paise per unit between the two. Simple calculations show that for supplying 7000 million units of power in 2011 and 14,393 units of power in 2012 the GUVNL has ended up paying Rs 441 crore and Rs 906 crore more to Adani Power Limited in the previous two years respectively – a total profit of Rs 1347 crore for the Adani group.
Hence over a period of 25 years, at the same rate, if Adani Power Limited supplies 15,000 million units of power to the GUVNL it would mean a net loss of Rs 23,625 crore to Gujarat. While this would mean an undue profit to Adani Power Limited, it would also impact the consumer – from farmers to the common man to industrialists – all would end up paying way more than they should ideally have been required to. When rates are hiked it also results in an increase in the rate of household items like clothes, food items, salt, oil and various other things that require electricity to be manufactured or processed. This decision of the government will not only affect 6 crore Gujaratis but also end up impacting people who buy products manufactured or processed in Gujarat for the next 25 years. Clearly, Modi’s government is more concerned about ensuring profits for the Adani Group rather than citizens of the state of Gujarat.
HOW GUJARAT WILL SUFFER
• Power being bought at Rs 2.89 per unit from Adani Power Limited while Coastal Gujarat Power Project is supplying at the rate of Rs 2.26 per unit – 63 paisa more per unit is being paid to Adani.
• Adani has supplied 7000 million units and 14393 units in 2011 and 2012 respectively causing the state a loss of Rs 441 crore and Rs 906 crore respectively – a total loss of Rs 1347 in two years.
• If 15,000 million units are bought from Adani over the next 25 years the loss to Gujarat would amount to Rs 23,625 crore
See also:
Bharat Bhushan - The 'unconventional' terrorists

 Don’t Ask, Don’t Tell - Manoj Mitta on how the SIT let off Modi / Interview: ‘Crucial Evidence Has Fallen Through The Cracks’

Popular posts from this blog

Third degree torture used on Maruti workers: Rights body

By Dilip -
The People’s Union for Democratic Rights on Tuesday alleged that third degree torture methods were used by the Gurgaon Criminal Investigation Agency while interrogating workers of Maruti Suzuki India Limited’s Manesar plant who are accused of involvement in the killing of an HR manager and the violent attack at the plant on July 18. The PUDR alleged that the Gurgaon CIA investigation “did not seem” to be directed at solving the crime or probing the involvement of the arrested workers in the incidents and crimes recorded in the FIR but instead was based on their involvement in trade union activities. Grave doubts  “The use of third degree torture in police custody, and the securing of arrestees’ signatures on blank papers by the police, gives rise to grave doubts regarding the ability of such an investigation in effectively identifying or arresting those guilty. The police and the State seem keener to reassure Maruti Suzuki Ltd. and ensure that production continues,” the PUDR stat
Read more

Haruki Murakami: On seeing the 100% perfect girl one beautiful April morning

By Dilip -
According to Murakami, “1Q84” is just an amplification of one of his most popular short stories,   which (in its English version) is five pages long. “Basically, it’s the same,” he told me. “A boy meets a girl. They have separated and are looking for each other. It’s a simple story. I just made it long.” One beautiful April morning, on a narrow side street in Tokyo's fashionable Harujuku neighborhood, I walked past the 100% perfect girl. Tell you the truth, she's not that good-looking. She doesn't stand out in any way. Her clothes are nothing special. The back of her hair is still bent out of shape from sleep. She isn't young, either - must be near thirty, not even close to a "girl," properly speaking. But still, I know from fifty yards away: She's the 100% perfect girl for me. The moment I see her, there's a rumbling in my chest, and my mouth is as dry as a desert..." read the story: http://www.youmightfindyourself.com/post/22131227
Read more

The Almond Trees by Albert Camus (1940)

By Dilip -
Image
'Do you know', Napoleon once said to Fontanes, 'what astounds me most about the world?  The impotence of force to establish anything.  There are only two powers in the world: the sword and the mind.  In the end, the sword is always conquered by the mind' Conquerors, you see, are sometimes melancholy.  They have to pay some price for so much vainglory. But what a hundred years ago was true of the sword is no longer true today of the tank. Conquerors have made progress, and the dismal silence of places without intelligence has been established for years at a time in a lacerated Europe. At the time of the hideous wars of Flanders, Dutch painters could still perhaps paint the cockerels in their farmyards. The Hundred Years War has likewise been forgotten, and yet the prayers of Silesian mystics still linger in some hearts. But today, things have changed; the painter and the monk have been drafted - we are one with the world.  The mind has lost that regal certainty which a c
Read more

Albert Camus's lecture 'The Human Crisis', New York, March 1946. 'No cause justifies the murder of innocents'

By Dilip -
The morning after a great historical crisis, you feel as sad and sick as after a heavy night. But there is no aspirin for historical hangovers .. The world is no longer divided into the just or unjust, but into masters and slaves. He who is right is he who enslaves.  Albert Camus     La crise de l'homme : THE HUMAN CRISIS   (Text read by Viggo Mortensen on March 28 2016)   Ladies and Gentlemen: when I was invited to give a series of lectures in the United States of America, I felt some doubt and hesitation. I am really not old enough to give lectures, and I am more at ease with the process of thinking than I am making categorical statements... since I don't feel I have any claim on what is generally called the truth. I shared this reservation and was very politely told that my personal opinion didn't matter. What mattered was that I'd be able to offer some facts about France so that my listeners could form their own opinions. It was then suggested that I might
Read more

Etel Adnan - To Be In A Time Of War

By Dilip -
NB: Etel Adnan, writer, poet, artist and musician was born in 1925 and raised in Beirut, Lebanon. Her mother was a Greek from Smyrna, her father, a high ranking Ottoman officer born in Damascus. This prose poem is the final chapter of her book  In the Heart of the Heart of Another Country .  Read more about her here  - DS To Be In A Time Of War To say nothing, do nothing, mark time, to bend, to straighten up, to blame oneself, to stand, to go toward the window, to change one’s mind in the process, to return to one’s chair, to stand again, to go to the bathroom, to close the door, to then open the door, to go to the kitchen, to not eat nor drink, to return to the table, to be bored, to take a few steps on the rug, to come close to the chimney, to look at it, to find it dull, to turn left until the main door, to come back to the room, to hesitate, to go on, just a bit, a trifle, to stop, to pull the right side of the curtain, then the other side, to stare at
Read more

After the Truth Shower

By Dilip -
Dear Readers Thank you for reading my blog for the past eleven years. (This is a link to the new one) During this time it has had nearly 1.7 million hits; and I have posted over 9500 posts covering a variety of themes. From July 11 to 19, 2022, my blog was withdrawn by the Blogger administration on account of what its machinery suspected to be 'Impersonation'. It took over a week and the efforts of several well-wishers to get it back online I thank them all for their kindness and goodwill  My blog has always been - and remains - non-commercial. I have used it for academic purposes; and to foster a culture of debate and informed commentary in civil society. Because it contains a large amount of material gathered and collated for over a decade, I cannot afford to lose its contents. I hope it will remain undisturbed now and function as an archive. However, I have decided to use a new blog on WordPress as a platform for my newest comments and posts The new blog is titled After the
Read more

Rudyard Kipling: critical essay by George Orwell (1942)

By Dilip -
Mother of Cities to me, For I was born in her gate, Between the palms and the sea, Where the world-end steamers wait  Rudyard Kipling , To the City of Bombay "Few people who have criticized England from the inside have said bitterer things about her than this gutter patriot" : George Orwell IT WAS a pity that Mr. Eliot should be so much on the defensive in the long essay with which he prefaces this selection of Kipling's poetry, but it was not to be avoided, because before one can even speak about Kipling one has to clear away a legend that has been created by two sets of people who have not read his works. Kipling is in the peculiar position of having been a byword for fifty years. During five literary generations every enlightened person has despised him, and at the end of that time nine-tenths of those enlightened persons are forgotten and Kipling is in some sense still there. Mr. Eliot never satisfactorily explains this fact, because in answering the shal
Read more