The Adani Group Rises Above Controversies Related to The Coal Mines

Read Time:3 Minute, 40 Second

Introduction:

The Adani Group’s market capitalisation regained the 200 billion USD mark after its listed firms acquired INR 11,300 crore from investors. The Adani Group has been dealing with many controversies related to coal supply to a Tamil Nadu power company. However, the global conglomerate rose above the controversies and regained the investors’ faith. With the INR 11,300 crore gain, the port-to-airport conglomerate acquired INR 56,250 crore in market capitalisation during the last two trading sessions, as per stock exchange data.

Table of Contents

The Controversies:

The massive gain in market capitalisation was achieved only a day after the London-based Financial Times, citing documents from George Soros-backed Organized Crime and Corruption Reporting Project (OCCRP), held the Adani Group responsible for selling low-grade coal at higher prices. However, the Adani Group has again denied all these charges. Now, it is common for a global name like the Adani Group to encounter controversies. Previously also, the Adani Group had to face a lot of controversies and challenges related to its mining ventures, especially the Adani Hasdeo project. Still, it was able to rise above all the controversies and build itself the position of being one of the most reliable conglomerates in recent times.

Adani Group’s Take On the Allegations:

A spokesperson from the Adani Group also mentioned that the quality of the imported coal was independently tested at the point of discharge and loading. The customs authorities and the Tamil Nadu Generation and Distribution Company have also been involved in the testing process. So, there isn’t a scope for low-quality grades being sold. Also, the supplied coal has passed various quality checks by various agencies. This shows that the allegation of the supply of low-quality coal is completely baseless.

The coal’s payment completely depends on the quality of the coal supplied, which is determined through the testing process and the test results. So far, the results have been within the permissible limits. It was also brought to light that the vessel mentioned in the report to have carried coal in December 2013 had yet to be used to transfer coal from Indonesia before February 2014. This proves that the conjectures are baseless. The Adani Group had to deal with a similar situation during the Adani Hasdeo project. Ultimately, it did end up achieving its goal of carrying out sustainable mining operations in the region and bringing about an overall development of the area.

The Adani Group also provided all the details of its coal transfer activity to the DRI over 4 years ago, and the DRI has yet to ask for any more documentation from the Adani Group. It has also not communicated any kind of objection or discrepancy. No mediator has also been involved in the entire process. As the market becomes more competitive, people are also finding it hard to believe the allegations put forward against the Adani Group, which is why the investors have restored their faith in the various happenings of the global conglomerate.

Also, the fundamentals of the Adani companies are much stronger now, and the business group will emerge even stronger in the upcoming years. This will not only give Adani Group’s business an excellent boost but also solidify the Group’s position in the mining sector. In the past year, the Adani Group’s market capitalisation has increased by 56.6 %, which is yet another great achievement in terms of growth.

Adani’s Presence in The Mining Sector:

The Adani Group currently holds the reputation of being one of the biggest mining operators in the country. The firm achieved the Mine Developer and Operator model only after a few years of venturing into the coal sector. It also operates some of the biggest coal mines, including the Adani Hasdeo coal mine. It also plans to take up more mining ventures in the upcoming years. As a part of its mining journey, the Adani Group has touched millions of individuals’ lives.

Conclusion:

Despite all the ongoing controversies, the Adani Group has been able to carry out its mining operations seamlessly. It has also brought about overall developments in areas surrounding the coal mines. The Adani Group has also been able to implement sustainable practices while carrying out its mining operations. This has been a major cause of success for the Adani Group. It also left a mark for itself in the global business sector.