RECORDS SHOW ADANI GROUP’S RISE COINCIDED WITH CONGRESS RULE AT CENTRE

The claim made in Parliament by Congress leader and Member of Parliament Rahul Gandhi on Tuesday, that the increase in the fortune of Adani Enterprises coincided with the arrival of the Narendra Modi-led BJP government at the Centre, does not match facts on the ground.

Closer scrutiny reveals that by the time the BJP formed its government in New Delhi in 2014, the Adani group was already a well-established business entity with a global presence. The “40 richest Indians” list of 2007, compiled annually by Forbes, saw 10 newcomers and the deletion of 14 names, including that of Jet Airways founder Naresh Goyal, who were a part of this list in 2006.

Among the 10 new names, whose net worth was $1.6 billion or more which was needed to make it to the list, was Gautam Shantilal Adani, the 45-year-old owner of Adani Enterprises. In the same year, the Initial Public Offering (IPO) that was brought by Adani Ports was oversubscribed 116 times. In 2009, the Adani power IPO was subscribed 21 times, reflecting the confidence among the people about the group.

The Adani group’s overseas investments that are now playing a vital role in increasing the book value of the company, took place post 2004 and required Central government clearances at multiple levels. Most of the acquisitions and setting up of business establishment by the group happened during the time of United Progressive Alliance (UPA) I-II and much before the arrival of the Modi government.

In 2005, the Adani Group won India’s first Mine Developer and Operator or MDO contract. The role of MDOS is to excavate, extract and deliver coal to Coal India Limited coal companies in accordance with the approved mining plan. This catapulted the Adani group to an enviable position as it allowed it to expand its coal-related business at a rapid pace.

On 28 June 2005, Adani Agri Logistics Limited signed an agreement worth Rs 800 crore with the Food Corporation of India (FCI) to design, develop, construct, operate and maintain project facilities for warehousing and transportation of food grains on Build, Own, Operate (BOO) mode for a period of 20 years. Under this, the company was to set up two base depots and five field depots for the storage and handling of food grains and other agricultural commodities. The project was divided into two circuits, with each