Bengal Government Moves Away from Adani Group for Tajpur Port Project

With its announcement on Tuesday to separate the proposed Tajpur port project from the Adani group, which is facing a plethora of accusations ranging from accounting fraud and stock price manipulation to over-invoicing of coal imports, the Mamata Banerjee government appears to be moving away from the company.

Tajpur is the location of a projected deepwater port. It's prepared. "You are welcome to take part in the tender," the chief minister said, addressing business executives gathered for the Bengal Global Business Summit 2023's opening ceremony.

The announcement came as a surprise since the Bengal government had awarded a letter of award (LoA) to the Adani group more than a year ago for the project that is estimated to generate investments around Rs 25,000 crore. The proposal also includes the creation of a nearby industrial zone and a new port.

The Bengal administration did not want to take the chance, according to a source close to Mamata, but no one from the state government wanted to publicly defend the choice.

"There is a condition in the Center's permission for the Tajpur project that states it may proceed if nothing negative is found in it. This indicates that the Center is placing the burden and danger of carrying out the project with the Adani group on our shoulders. Why should we accept the chance? The person enquired.

The insider said, "We would have to take the blame in case something major comes out against them."

In a procurement announced by the government in March 2022, Adani Ports and Special Economic Zone outbid the Sajjan Jindal-backed JSW Infrastructure. The CEO of APSEZ and the son of the firm founder Gautam Adani, Karan Adani, arrived in Calcutta on October 12, 2022, to take receipt of the LoA from the Bengali government.

The next stage of the project was for the state and the group to execute a formal concession agreement, which would govern the development of the greenfield port on a design, construct, finance, operate, and transfer basis. This contract is still pending signature.

The Adani group was allegedly attempting to carry out the largest corporate fraud in India via several cross-border financial transactions involving businesses formed in offshore tax havens, according to a study released in January by US short-seller Hindenburg Research.

The state budget, which omitted any mention of the Tajpur port—possibly the state's most ambitious infrastructure project in fifty years—was the first overt indication of the Mamata Banerjee government's unease.

A few industry insiders, however, expressed concern that the bidder bold enough to begin construction on the Tajpur project would face legal repercussions if they try to locate a new investor.

The Adani group was not invited to the conference this time, according to a source.

The decision is being made against the background of the controversy over the proposal by the Lok Sabha Ethics Committee to remove Mahua Moitra, the MP for Trinamul, after it was alleged that she had taken bribes to question lawmakers about the Adani group.

"Today's revelation dispels the misunderstanding over Mahua's support status from the party's high leadership, who had been silent on Mahua's conflict with the Adani group. According to a Trinamul insider, Mahua's support from the party leadership is now evident.

Another reason Moitra might celebrate is that the Hiranandani group was not invited to the conference, according to a government source.

In his affidavit, Darshan Hiranandani claimed that he had used Moitra's login credentials to submit many inquiries on her behalf. He said that he had lavished Moitra with costly presents.

"The Adani and Hiranandani groups are both interested in business in the state. However, it seems that Didi disregarded it for political reasons and supported Mahua, who has been acting as a whistleblower in the Adani issue, according to a source.

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