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Is the Adani group’s proximity to Modi a cause for worry ?

Is the Adani group’s proximity to Modi a cause for worry in 2022?

It’s impossible to rationalize the massive increase in Adani group stock prices just because a BJP-led government might come to power in India and favour the company. Such open favouritism may have been possible in the past. However, with the opposition parties and the media scrutinizing every government transaction and the Comptroller and Auditor General (CAG) combing through them with a fine-tooth comb, it would be practically hard for the incoming government to favour any specific corporation. 

Is the Adani group's proximity to Modi a cause for worry?

Adani Airports became the single-largest shareholder of Mumbai’s Chhatrapati Shivaji Maharaj International Airport earlier this month after the Airports Authority of India, the government agency that regulates India’s airports, approved its purchase.

AA is an energy infrastructure firm backed by Indian billionaire Gautam Adani, founder and chairman of India’s Adani Group.

According to the Bloomberg Billionaire Index, Adani’s net worth has increased by approximately 340 per cent since May 2014, to approximately $34 billion as of January 2021. This places him second only to Mukesh Ambani, the chairman of Reliance Industries and India’s richest person, who has seen his wealth grow similarly.

On the other hand, Markets anticipate that the Adani group would embark on a new growth path, owing to the promoter Gautam Adani’s close relations with Prime Minister Narendra Modi. Gautam Adani was one of the few business people who supported Modi after the Godhra riots and helped start certain development projects when most others stayed away. The market believes the Adanis is nearing the end of its payback period.

Huge debt on Adani Group, but investors malamal | Navabharat (Navbharat) -  Hayat NewsGautam Adani, 55, is not only one of India’s wealthiest people. As the owner of the Adani Group, which operates India’s largest private port and is the country’s largest private electricity producer, he is also one of the country’s most powerful and electorally influential people.

His rise has paralleled that of Narendra Modi. Their close friendship has come under intense public scrutiny, but it has thrived despite opposition criticism. The good relationship has come under scrutiny once more, with the Business Insider reporting that the Prakash Javadekar-led environmental agency has withdrawn a Rs 200 crore fine against Adani.

How did Modi help Adani?

Gautam Adani is not just one of India’s wealthiest men, as the owner of the Adani Group, which owns India’s largest private port. Still, he is also the country’s most powerful and politically influential individual.

The decision raises questions about how Adani’s firm has frequently benefited from government handouts due to Modi’s proximity. But before we get into the multiple favours Adani has received, it’s essential to understand how he became Narendra Modi’s blue-eyed kid.

The period following the Gujarat riots in 2002 was one of the most trying in Modi’s career. Atal Bihari Vajpayee, the prime minister of his party, was preaching “raj dharma” to him; there were calls for his removal, and industrialists ignored him.

Gautam Adani | Chairman of Adani Group | All You Need To KnowIn response to criticism from a group of CII industrialists, Adani formed a competing organization, the Resurgent Group of Gujarat. Adani was also a big supporter of the Vibrant Gujarat summits, which were crucial in building the Gujarat Model fan base that fueled Modi’s 2014 campaign.

Adani is known to have been one of the biggest backers of Modi’s most expensive election campaign, which catapulted him to power in May 2014. Modi also crisscrossed the country using Adani’s jets for his high-octane campaign. Modi utilized Adani’s private plane to arrive in Delhi following his stunning victory.

एक खबर ने बिगाड़ा Gautam Adani का खेल, एक घंटे के भीतर हुआ 55000 करोड़ का  नुकसान, 20% तक लुढ़के Adani Group के शेयर्स | TV9 BharatvarshMany critics questioned what was in it for Adani, a Gujarat-based global industrialist, in light of his unwavering backing of Modi. Modi trolls even claimed there was a “quid pro quo” in which Modi would reward Adani with perks in exchange for his assistance to the NDA prime minister.

The incredible lengths to which the Narendra Modi government has gone to promote Adani’s stalled mining project in Chhattisgarh exemplifies how Modi Raj has meant acche din just for Adani.

The issue concerns tribal forestland, which is where Adani’s mining project is expected to be developed. The tribals, who have claimed community rights over the forest land under the Forest Rights Act and have stated their strong objection to the project twice, led by Chief Minister Raman Singh, who has intervened on behalf of the Adani company.

Did the Adani Group Evade Rs 1,000 Crore in Taxes?The matter was sent to the Ministry of Tribal Affairs for review, where many layers of bureaucracy and personnel backed up the tribals’ position.

Gautam Adani has been a staunch supporter of Modi for a long time. However, looking at the following examples can help us cut a long story short and understand how Adani was able to gain Modi’s trust.

Adani Group signed a Memorandum of Understanding with the public sector major State Bank of India in November 2014 for a one-billion-dollar loan for its dubious Australian mining project.

After nine of the world’s leading banks declined to finance the venture due to its negative potential environmental impact, SBI signed the MoU. Furthermore, the project has been marred by controversy. It was a coal mining project with an excessively long gestation period in a sector that is seeing a decline as people shift to more sustainable sources of energy.

Even during Adani’s time in Gujarat, Modi’s rule was advantageous for him. The Gujarat government, led by Gujarat chief minister Narendra Modi, provided land for Adani’s SEZ at the lowest possible price, ranging from Rs 1 to Rs 32 per meter.

Democracy must be recognized. It is governed by and for the people, not by and for the cronies.

Modi should be concerned about Adani’s good fortunes under Modi, and not simply because of the troubling and basic problems that such cozy partnerships pose.

Slowly but steadily, the electorally harmful idea that in the Modi government, it’s acche din solely for Adani is gaining traction.

Both past and future fundamentals do not justify the group’s share price increase. In today’s world, where we can find an activist at the drop of a hat and a complaint can be brought for the smallest of infractions, proximity to the prime minister or a political party is a cause for concern rather than celebration.

Edited by Prakriti Arora

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