According to the OCCRP exposé, at least 24 shipments of coal that landed on the Tamil Nadu coast between January and October 2014 were initially priced as low-quality but were ultimately sold by the Adani Group at three times their original cost. This discrepancy has raised serious questions about the integrity of the transactions and the true quality of the coal supplied.
One particular instance highlighted in the report involves the bulk carrier MV Kalliopi L, which docked at Ennore port on January 9, 2014, after a two-week journey from Indonesia. The ship was carrying 69,925 tonnes of coal intended for Tamil Nadu’s power company. However, the paperwork for this cargo took an unusual detour, passing through the British Virgin Islands and Singapore. During this process, the price of the coal inexplicably surged to $91.91 per tonne, more than triple its original price. Additionally, the quality of the coal was mysteriously upgraded from low-grade steam coal to high-quality coal, which is more desirable for power generation.
This revelation has intensified scrutiny of the Adani Group’s business practices and has led to calls for a thorough investigation. Environmentalists and local activists have long raised concerns about the impact of low-quality coal on air quality and public health in Tamil Nadu. The OCCRP’s findings provide further evidence of the potential environmental and economic ramifications of such practices.
The political ramifications of this report are significant, as it highlights the need for greater transparency and accountability in state-level procurement processes. The Tamil Nadu government is under pressure to address these allegations and ensure that such discrepancies do not recur.
In response to the OCCRP report, various stakeholders are demanding immediate action. There are calls for a comprehensive audit of the coal procurement process and stringent measures to prevent future malpractices. The Adani Group has yet to respond to these allegations publicly.
As the investigation unfolds, the outcome will be closely watched by both national and international observers. The implications of this report extend beyond Tamil Nadu, potentially affecting broader discussions on corporate governance and environmental responsibility in India.
