Gautam Adani makes a ‘courtesy call’ on Jayalalithaa

Adani Group chairman Gautam Adani and Managing Director Rajesh Adani called on Chief Minister Jayalalithaa at her office in the Secretariat on Thursday.

While the government termed it a “courtesy call” lasting barely 10 minutes, the Adani group representatives also were not forthcoming with details on what transpired at the meeting.

The Adani Group, one of the leading business houses with revenues of about $9.4 billion (fiscal 2014-15), is setting up a 648 MW solar park in Ramanathapuram district at a cost of Rs. 4,536 crore.

According to official sources, Adani Green Energy (Tamil Nadu) Ltd has so far commissioned only 250 MW out of 648 MW planned for want of substation.

Hence, the company had expressed concern about the completion of the Kamudhi substation, as without it, the rest of the solar capacity cannot be commissioned.

Company officials were told that work on the Rs. 453-crore substation was progressing fast and it would be ready by August-end, sources said.

The Adani Group had signed an agreement with TANGEDCO in July 2015 as per which the State’s power utility would purchase electricity at Rs. 7.01 per unit.

This led to a controversy with the opposition accusing the AIADMK government of buying at high cost when the prices of solar power were falling and as the same Adani Group had quoted a price of Rs. 6.04 per unit in Madhya Pradesh.

One of the Tamil Nadu Electricity Regulatory Commission members, S. Nagalsamy, had also questioned the undue urgency shown by his colleagues in fixing the price at Rs. 7.01 per unit (for the next 25 years).

“Whatever was commissioned before March 31, 2016 will get Rs. 7.01 per unit. Now, it is only Rs. 5.10 per unit,” official sources say.