The Adani Group MP

The Adani Group Will Invest Over Rs 2 L Cr In Gujarat: Gautam Adani

Gautam Adani, Chairman of the Adani Group, delivered a keynote address at the 10th Vibrant Gujarat Summit, expressing his pride in being part of the summit’s decade-long journey.

He addressed an audience, including Prime Minister Narendrabhai Modi, Sheikh Mohamed bin Zayed al Nahyan, Chief Minister Bhupendra Patel, distinguished ministers, captains of industry, and attendees from partner countries.

In his address, Adani commended Prime Minister Modi’s extraordinary vision, highlighting Vibrant Gujarat as a stunning manifestation of grand ambition, massive scale, meticulous governance, and flawless execution.

He credited the summit with igniting a nationwide movement, transforming India’s industrial landscape as states competed and cooperated.

Adani said, “The statistics of the past decade are remarkable: since 2014, India’s GDP has grown by 185 per cent, and per capita income by a stunning 165 per cent. This achievement is unparalleled, especially considering this decade’s geopolitical conflicts and pandemic challenges.”

He praised PM Modi’s international leadership, particularly the Solar Alliance initiative and his influential role at the G20 platform, shaping a more inclusive world order.

“PM has taken us from a country seeking a voice on global platforms to a nation that now creates the global platforms. The Solar Alliance platform, an initiative you conceptualised, and your leadership at the G20 platform set a benchmark for a more inclusive world order. Adding the Global South to the G20 is a defining moment in modern history, said Adani.

Adani added, “With your (PM Modi) foresight in harnessing India’s youth to build a Vikshit Bharat and make India a fully developed nation by 2047, you have ensured that the India of today is poised to shape the global future of tomorrow.”.

Addressing the Prime Minister directly, Adani lauded Modi’s ability not only to predict the future but to shape it.

He emphasised the reorientation of India as the world’s fastest-growing nation and a global social champion, driven by philosophies of Vasudeva Kutumbakam and Vishwa Guru.

“At the previous summit, I announced our investment of over Rs. 55,000 crore by 2025. We have already surpassed Rs. 50,000 crore across the various sectors I had promised and have vastly exceeded our target of 25,000 direct and indirect jobs”, said Adani.

Delighted with surpassing this target, he committed to further investments, unveiling ambitious plans for the Adani Group. The group is set to construct the world’s largest green energy park in Khavda, Kutch, covering 725 square kilometres and generating 30 GW of renewable energy–a project visible even from space.

Adani said, “Today, I commit to further investments. We are constructing the world’s largest green energy park in Khavda, Kutch, generating 30 GW of renewable energy over 725 square kilometres, even visible from space. We are expanding the green supply chain for an “Atmanirbhar” Bharat and creating the largest integrated renewable energy ecosystem”.

He added, “This includes solar panels, wind turbines, hydrogen electrolysers, green ammonia, PVC, and expansions in copper and cement production”.

The Adani Group’s expansion includes the creation of the largest integrated renewable energy ecosystem, encompassing solar panels, wind turbines, hydrogen electrolysers, green ammonia, PVC, and expansions in copper and cement production.

“Over the next five years, the Adani Group will invest over Rs 2 lakh crore in Gujarat – that is USD 25 billion–thereby creating over 100,000 direct and indirect jobs”, Adani stated.

Expressing gratitude for the support received, Adani concluded by committing to contribute to a Vikshit Gujarat–a vision aligned with Prime Minister Modi’s transformative goals for the state and the nation. (ANI)

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Adani-Hindenburg

Truth Has Prevailed, Says Adani After SC Ruling On Adani-Hindenburg Row

Adani Group Chairman Gautam Adani on Wednesday welcomed the ruling of the Supreme Court declining to transfer the probe into the Adani-Hindenburg matter from market regulator SEBI to a SIT (Special Investigation Team) or the CBI.

Adani tweeted saying that the judgement shows that truth has prevailed and said he was grateful to those who stood by the Adani Group.

“Satyameva Jayate. I am grateful to those who stood by us,” he posted on X.

“Our humble contribution to India’s growth story will continue,” the X post added.

In a relief to the Adani group of companies, a bench of Chief Justice of India DY Chandrachud, PS Pardiwala and Manoj Misra said the scope of power of the apex court to enter into the regulatory domain of SEBI is limited.

It said the scope of judicial review is only to see whether any fundamental right has been violated.

The verdict of the top court came on a batch of petitions seeking a court-monitored investigation or CBI probe into the allegations made by US-based firm Hindenburg Research against the Adani group of companies regarding violations of the stock market.

The bench said there has been no regulatory failure by SEBI and the market regulator cannot be expected to carry on its functions based on press reports though such reports can act as inputs for SEBI.

The top court also asked SEBI to complete within three months its probe into two cases pending out of 24 cases.

The case is related to the allegations (part of a report by short-seller Hindenberg Research) that Adani had inflated its share prices. After the publication of these allegations a sharp fall in the share value of various Adani companies, reportedly to the tune of USD 100 billion was seen.

The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

Various petitions were filed alleging that changes to the Securities and Exchange Board of India Act (SEBI Act) had provided a shield and an excuse for the Adani Group’s regulatory contraventions and market manipulations to remain undetected.

The apex court then asked SEBI to independently probe the matter and also constituted an expert committee headed by retired Supreme Court judge Justice AM Sapre to look into the matter.

In May last year, the expert committee, in its report, found no prima facie lapse on the part of the SEBI in the matter.

While reserving the verdict, the Supreme Court said it has no reason to “discredit” SEBI, which probed allegations against the Adani group, as there was no material before it to doubt what the market regulator has done, and the court does not have to treat what was set out in the Hindenburg report as a “true state of affairs.”.

It had been observed that it cannot ask a statutory regulator to take as a “gospel truth” something that was published in the media.

Advocate Prashant Bhushan, appearing for one of the petitioners, had told the apex court that there were many factual revelations in the Hindenburg report.

He said it was for the top court to see whether the investigation done by the SEBI was credible or not and whether some other independent organisation or an SIT needed to be formed to investigate it. (ANI)

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Adani Group on hidenbrug report

SC Report Helped Rebuild Confidence In Group: Adani

Adani Group Chairman Gautam Adani on Tuesday once again slammed the US-based short seller Hindenburg Research report terming it was “a combination of targeted misinformation and discredited allegations.”

Addressing the company’s 31 st Annual General Meeting (AGM) 2023 today, Adani told investors that in January this year the US-based group had published a report to short the company’s stocks just as they were planning to launch the largest Follow-on Public Offering in India’s history.
“The report was a combination of targeted misinformation and discredited allegations, the majority of them dating from 2004 to 2015. They were all settled by the appropriate authorities at that time. This report was a deliberate and malicious attempt aimed at damaging our reputation and generating profits through a short-term drive-down of our stock prices,” Adani said in a video message.

“Subsequently, despite a fully subscribed FPO, we decided to withdraw and return the money to our investors to protect their interests. While we promptly issued a comprehensive rebuttal, various vested interests tried to exploit the claims made by the short seller. These entities encouraged and promoted false narratives across various news and social media platforms,” the industrialist said.

The Hindenburg report, which came out this January 24, alleged stock manipulation and fraud, among other charges, by the conglomerate.

The Adani Group had then termed Hindenburg as “an unethical short seller”, stating that the report by the New York-based entity was “nothing but a lie”. A short-seller in the securities market books seeks to gain from the subsequent reduction in the prices of shares.

SEBI and a Supreme Court-appointed expert committee were tasked to probe the matter. The SC committee had made its report public in May this year.

Addressing shareholders today, Adani said that the apex court-appointed expert committee’s report helped rebuild confidence in the Adani group.

“The (SC-constituted) expert committee did not find any regulatory failure. The committee’s report not only observed that the mitigating measures undertaken by your company (Adani Group) helped rebuilt confidence but also cited that there were credible charges of targetted destablisation of Indian markets,” Gautam Adani told investors at the AGM.

“It also confirmed the quality of our Group’s disclosures and found no instance of any breach. While SEBI is still to submit its report we are confident of our governance and disclosure standards. It is my committment that we will continue to strive to keep improving this every single day. Our track record speaks for itself.”

Supreme Court-appointed expert committee constituted to look into the Adani-Hindenburg row, in May, had said it would not be possible for it to conclude that there has been a regulatory failure around the allegation of price manipulation in stocks.

“At this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the Committee to conclude that there has been a regulatory failure around the allegation of price manipulation,” the expert committee had said in its report submitted to the apex court.

On March 2, Supreme Court set up an expert committee on the issue arising from the Hindenburg Research report on Adani Group companies. The committee was headed by former apex court judge Justice AM Sapre. The top court had then asked SEBI to file a status report within two months.

Referring to the then volatility in the stocks and stating the interest of the investors as paramount and to insulate them from any potential financial losses, the Board had decided not to go ahead with the fully-subscribed FPO. A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange after its initial public offerings.

Adani Enterprises had filed a red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for the Rs 20,000 crore follow-on public offer (FPO), the largest ever in India.

Meanwhile, Gautam Adani also told stakeholders in his address today  that even after the Hindenburg episode, the group continued to raise several billions from global investors and pointed out that no rating agencies, both in India or abroad, have cut its ratings.

The industrialist also extolled the growth prospects for India.

“While economic cycles are getting increasingly hard to forecast, there is little doubt that, India – already the world’s 5th largest economy – will become the world’s 3rd largest economy well before 2030 and, thereafter, the world’s second largest economy by 2050,” Adani said.

“Following our independence, it took us 58 years to get to our first trillion dollars of GDP, 12 years to get to the next trillion and just 5 years for the third trillion. I anticipate that within the next decade, India will start adding a trillion dollars to its GDP every 18 months. This puts us on track to be a 25 to 30 trillion-dollar economy by 2050 and will drive India’s stock market capitalization to over 40 trillion dollars – approximately a10X expansion from current levels,” he said. (ANI)

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Mahua Moitra ON Adani

Adani Approached Me, I Have Nothing To Talk To Him: Mahua Moitra

Trinamool Congress (TMC) MP Mahua Moitra on Thursday said that businessman Gautam Adani tried to reach her but on one on one basis she has nothing to discuss with him.

In this regard, she took to Twitter and said,” Adani tried utmost to get to me and few others through his friends/wheeler-dealers. He couldn’t even find the door, let alone get past it. I have nothing to discuss on a 1:1 basis with Adani. I firmly believe till govt takes action no politician should engage with this man”.

Earlier today on Twitter, TMC MP shared a media report of Gautam Adani meeting with the NCP leader Sharad Pawar and stated that we can only hope that NCP has the good sense to put country before old relationships.

“Adani hamaam mein to saare hi nange hai. I have no fear of taking on Great Marathas. Can only hope they have the good sense to put country before old relationships. And no, my tweet is not anti-opposition unity. Rather it is pro-public interest,” TMC MP tweeted.

Also Rajya Sabha MP Priyanka Chaturvedi on Thursday wrote a letter to the SEBI chairman seeking details that the market regulator had initiated against some of the companies of the Adani group.

The member of Parliament on Thursday said in her tweet, “My letter to SEBI Chairperson, reminding her once again, after my letter dated Feb 3, 2023, that investigation SEBI began in some of the Adani Group companies in 2021 still awaits a closure report. It is only fair the investors know the outcome”.

Earlier On March 2, the Supreme Court set up an expert committee amid the controversy arising out of a report by US short-seller Hindenburg Research on the Adani Group. It directed SEBI to investigate whether there has been a violation of Section 19 of SEBI rules and any manipulation of stock prices. (ANI)

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India And Its Media Find It Safe To Go Soft On Adani

India And Its Media Find It Safe To Go Soft On Adani

Why India and its media continue to be soft on Adani

The phrase “play out” is (and I checked!) the phrasal verb of play and it usually means: 1. To develop in a particular way; and 2. To happen; or take place. Now, let’s examine what India’s Economic Secretary, Ajay Seth, may have meant about the crisis surrounding the Adani Group, which is facing allegations of financial manipulation and fraud, when he said that it (the crisis) would “play out”. That was how one of India’s top bureaucrats was quoted as saying in The Hindu newspaper.

What did he really mean? Did he mean (going by the dictionary meaning) that it would either “develop in a particular way” or would “happen” or “take place”. If he meant any of those things (and I am assuming that he was quoted correctly in the reputed newspaper) then, sorry, but he said nothing. Or, did he use the phrase “play out” in an intransitive verb form, which the Merriam-Webster dictionary informs me could mean “to become spent or exhausted”. Could the good bureaucrat have meant that? That the crisis around the Adani group would become spent or exhausted or, in other words, die out?

Unfortunately, though that is usually the fate of allegations of financial scams and fraud, particularly those against big Indian companies and conglomerates in India. To borrow a bureaucratic phrase, they “play out”. That is, nothing happens. After a short period of controversy and ripples in media and political circles, they die out. 

Will that also happen to the crisis that the Adani group finds itself in? It probably will. Last week, a leading Indian newspaper carried a headline that said “Adani-Hindenburg row: SC to hear pleas on ‘conspiracy that tarnished India’”. That headline says it all. Sanjay Sipahimalani, a writer, tweeted the headline with a comment: “Please note the framing of the headline. When they write a history of the media during this time, it should be titled ‘The Handmaid’s Tale’”. He nailed it. 

India’s mainstream media have been rather subdued about the Adani affair. Besides in their reporting on the business group’s rebuttal (a 400-plus page assemblage of mostly verbiage), there is little insight on the allegations of stock manipulation or obfuscation of debt by the group. In fact, while the tiny activist outfit, Hindenburg Research, was doing its investigation into the group, Indian media was largely celebrating Adani’s meteoric growth and ambitions, which The Economist recently called pharaonic. In a recent leader, the publication said “The media are mostly too cowed to investigate the mighty as they once did. Few Indian newspapers would have touched the story about Mr Adani had an American firm not asked the tough questions. Mr Adani himself recently bought NDTV, a news channel that was once critical of the government but is now supine.”

Part of the hesitancy to investigate charges against Adani and his empire also comes from the fact that Adani is very close to Prime Minister Narendra Modi, a person that is very rarely put under the scanner by big Indian media groups. Adani, whose business roots are in Gujarat, became close to Modi when the latter was the chief minister of that state. In fact, it is believed that Modi flew to Delhi when he became Prime Minister in 2014 in a plane belonging to Adani. So if the media fight shy of taking on Modi (on any controversy that could involve him) then they probably think it’s safer to give his allies a wide berth too.

Could a tragic natural calamity rebuild Indo-Turkish ties?

When an earthquake of unforeseen dimensions hit Turkey, killing an estimated 180,000 people, the world was shocked. Quickly, foreign aid from across the globe started pouring into Turkey to help the country overcome the massive humanitarian crisis that it faces. India too stepped forward to help Turkey.

Launching what it called Operation Dost, India sent assistance to Turkey as well as Syria after last Monday’s devastating earthquake that toppled buildings, flattened cities, and buried thousands. The aid comprised medical supplies, medical professionals and search and rescue teams.

The significance of Operation Dost (Dost means friend in Hindi) is that relations between India and Turkey have not been great in the past. Turkey under president Recep Tayyip Erdogan has supported Pakistan’s claims in Kashmir and has looked at that nation in its bid to develop nuclear weapons. In the past, Erdogan has often berated India on the Kashmir issue and called for a settlement on the basis of a UN resolution that India considers both dated and untenable.

However, more recently,Turkey has diluted its anti-India stance and also cranked down its support for Pakistan. A few days ago, Turkey snubbed Pakistan’s Prime Minister Shehbaz Sharif and asked him to cancel his visit to Ankara because the government was busy with relief and rescue missions. Observers believe that this and the prompt reaction to the earthquake by the Indian authorities could be the beginning of a rapprochement between the two countries.

Was a Chinese balloon spying on North America?

Last week the US declared that it had shot down a Chinese balloon that it believed was used in espionage operations by China over military bases across the USA. US dispatched fighter jets to shoot down the balloon, which crashed into US territorial waters. China, predictably, claimed that the balloon was an unmanned civilian aircraft. Footage on US TV networks showed the balloon falling to the sea after a small explosion.

The balloon was being tracked for a few days and President Joe Biden was under considerable political pressure to order shooting it down. 

The action set off a diplomatic crisis after the Chinese foreign ministry said: “The Chinese side has repeatedly informed the US side after verification that the airship is for civilian use and entered the US due to force majeure – it was completely an accident.”

The crisis led to the US secretary of state Antony Blinken calling off an official  weekend trip to China. China has denied that the balloon was a spying aircraft, and instead said it was a weather ship blown astray.

The incident, however, puts a spanner in the works as far as improvingUS-China relations is concerned.

Modi gets positive about Pathaan

Remember the controversy raked up by pro-Hindutva activists over the Shah Rukh Khan and Deepika Padukone starrer Pathaan? Padukone wore an orange (or a hue of saffron) bikini in a song sequence in the film, which the Hindutva brigade found to be offensive. The film, however, went on to break box office records and provided a huge boost to Khan, a Bollywood superstar whose career had been flagging. 

Now, Prime Minister Modi has weighed in with his comments on how the film has fared. Although many of his fanatical followers (in social media troll-speak they are known as Bhakts), have protested against the film, in a speech in Parliament Modi pointed out that cinemas in Kashmir were full during the ongoing screening of Pathaan.

Modi and his government have been at pains to emphasise that things are normalising in the violence-torn state. Cinemas had been reopened in the state after years but the response of the public had been muted. Now, with Pathaan drawing in the crowds, Modi, a canny politician, is capitalising on the move. The HIndutva brigade must be feeling a bit chagrined.

The race for AI chatbots is on

After OpenAI launched its intelligent chatbot, ChatGPT, tech giants such as Microsoft and Google have been racing to develop and launch their own versions of a chat and search engine that closely resembles a near-human nature and abilities. Microsoft pipped Google to the post by launching an enhanced version of its hitherto underwhelming Bing search engine. The new version is powered by OpenAI software and although the jury is out on how good it is, it has at least won the first round against rival Google.

Google, on its part, has announced that it will soon launch Bard, its own version of an AI-driven search and chat interface but when the bot flubbed an answer in a promotional ad, the share prices of Google’s parent company Alphabet dived!

The race for who has the best chatbot is not over yet and much action from tech’s biggest players is expected in the coming months.

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Adani Group May Sue Hindenburg for 'damning' report

Adani Group Considering Legal Action Against Hindenburg

Adani Group on Thursday said it is considering legal options in the US and India against Hindenburg Research after its report accused firms owned by Gautam Adani of “brazen” market manipulation and accounting fraud.

Jatin Jalundhwala, Group Head – Legal, Adani Group, said, “The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders and investors.”

The legal head said, “We (the Group) are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.”

“The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” the legal head said in a statement on Thursday.

Hindenburg, an US investment research firm published a report claiming that Adani group had links with a labyrinth of off shore tax havens linked to Gautam Adani’s family and the firms exposure to high debt was a concern. The report also claimed that Adani group’s stock price was inflated and had significant downside risks.

On the report affecting Adani shares, Jatin Jalundhwala said, “Clearly, the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares.”

Jalundhwala also mentioned Hindenburg which said that it had taken “short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities.”

The Adani group’s legal head said, “We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.”

Jugeshinder Singh, the chief financial officer (CFO) of the Adani Group, on Wednesday said the conglomerate was “shocked” by the Hindenburg Research’s report and termed it a “malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts”.

Reportedly, the research firm, in its report on Tuesday, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations.

“We are shocked that Hindenburg Research has published a report on January 24, 2023, without making any attempt to contact us or verify the factual matrix. The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts,” the CFO said in a statement.

The timing of the report by Hindenburg Research, the CFO, in his statement, said “clearly betrays a brazen, mala fide intention to undermine” the Adani Group’s reputation with the “principal objective of damaging” the upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India. (ANI)

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Adani Acquisition Of NDTV

Adani Completes Majority Acquisition Of NDTV

The Adani Group on Friday said it had acquired a 27.26 percent equity stake in NDTV from the promoters — Prannoy Roy and Radhika Roy — indicating that the group had acquired the majority stake in the media firm.

In a statement on Friday, the Adani Group said, “RRPR, an indirect subsidiary of Adani Enterprises and member of the promoter/promoter group of NDTV, has acquired 27.26 percent equity stake in NDTV from Mr. Prannoy Roy and Mrs. Radhika Roy (“Sellers”) by way of inter-se transfer under Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.”
According to the statement shared with the stock exchanges, consequent to the present acquisition, RRPR will now hold a 56.45 percent equity stake in NDTV.

The Adani Group also said Vishvapradhan Commercial Private Limited (an indirect subsidiary of the Adani group) holds an 8.27 percent equity stake in NDTV and RRPR (prior to the present acquisition) held 29.18 percent equity stake in NDTV.

AMG Media Networks, a wholly-owned subsidiary of Adani Enterprises Limited, had announced on August 23 that it had acquired a 100 percent equity stake in Vishvapradhan Commercial Private Ltd (VCPL).

On December 23, Prannoy Roy and Radhika Roy said in a statement that discussions with Gautam Adani had been constructive since the open offer was launched and the suggestions that have been made were accepted by Adani Group chief “positively and with openness”.

The AMG Media Network, after the recent open offer, is now the single-largest shareholder in NDTV, according to the statement.

“Consequently, with mutual agreement, we have decided to divest most of our shares in NDTV to the AMG Media Network,” it said.

“Since the open offer was launched, our discussions with Mr. Gautam Adani have been constructive; all the suggestions we made were accepted by him positively and with openness,” it added.

The NDTV founders had proposed to transfer 27.26 percent of their shares in the media company to the Adani Group.

Radhika and Prannoy Roy had proposed to sell 13.44 percent and 13.82 percent stakes, respectively, in NDTV to RRPR Holding, NDTV said in a stock exchange filing earlier.

On December 23, the Adani Group held a 37 percent stake in NDTV after an open offer and an earlier acquisition. (ANI)

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Francis Kalathunkal on the movement against Adani’s port project | lokmarg

Vizhinjam Project Has Exposed The Opportunistic Face Of CPM

Francis Kalathunkal, a member of the Vizhinjam Civil Society Solidarity Forum, alleges that the Kerala Govt has joined hands with RSS to quell protests against the port

The protest against the Vizhinjam Port Project has been halted after nearly 140 days of struggle. This is a temporary pause. The main reason was due to some unfortunate incidents on November 26 and 27 at Mullor and Vizhinjam after which more than 3,000 people were booked under non-bailable offenses. TVM Arch Bishop was named as the first accused.

This project was notified during the UDF government led by Oommen Chandy. At that time the CPM had opposed this project calling it against the fishermen and people. When LDF came to power, Adani directly visited the AKG Centre, the state central office of the CPM. After this, the CPM changed its view and said the project will be helpful for the development. The state propaganda machinery swung into action after that.

The affected people mostly belong to a Latin Catholic congregation. When these people shared their agonies and apprehensions with the clergy, the Church came forward and organized the necessary steps. Initially, it was not a secular forum. But later, the Church realized that until this movement was not secular, the government will be able to paint it as a vested interest. The responsible media also helped build up the movement.

The government initially tried to cold-shoulder it, but as the protests began garnering massive support, especially from the 284 families living in cement godowns for the last five years, the government took note of it. The government brought this issue to a single-judge bench of the High Court which allowed the government to proceed with the construction. It also allowed the use of police force to control the protests. But the government developed cold feet when the Opposition lapped it up to nail the Pinarayi govt.

ALSO READ: ‘Vizhinjam Handiwork of a Callous Politico-Industrial Nexus’

It then played a dirty trick by joining hands with the RSS to create a counter-movement. Till then, the protests were peaceful and effective; the demonstrators had blocked the road to disallow any construction material from entering the port area. Suddenly, out of nowhere, Vishwa Hindu Parishad rallies emerged in support of the port. It was an unusual marriage of convenience. But it completely exposed the opportunistic face of CPM.

It sent a clear message that in the name of development policy, CPM is not averse to joining hands with the BJP. The progressive façade of CPM was laid bare. The Opposition too tried to wash its hands of the incident. Now, the Church, for its secular stand, has gained support from a larger section of society. The solidarity front organized meetings and rallies in almost all districts of Kerala. That also was disturbing for the government. They realized that they cannot democratically handle the movement. So they resorted to unethical means.

CPM instigated violence and created a situation where all democratic forms of struggle could be suppressed. Nowhere was violence done by protestors. A section of the people was under the impression that violence was started by the fishermen’s community. This created cleavage in the movement. The Church felt it was wise to temporarily halt the struggle. But it does not mean that agitation is over.  

(The narrator is a retired Assistant Professor from KRG College of Engineering)

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As told to Abhishek Srivastava

World's Third Richest Man

The Adani Ascendency Phenomenon

Jawaharlal Nehru consciously avoided being seen close to any of the large business houses of his times. In their ingeniousness, those houses successfully found their way through the labyrinth of the much feared and despised Indian bureaucracy and political establishment. The bureaucracy’s vice-like grip over economic administration remained unchanged for a good number of decades since Independence. At the same time, a few brave hearts, determined to make it big despite the infamous licence Raj and the concomitant bureaucratic cobwebs, managed to get into the inner court of the country’s third Prime Minister Indira Gandhi (1966 till October 31 1984, except for 1977-1980).

In Mrs Gandhi’s personal secretary and confidante extraordinaire RK Dhawan, wielding enormous power, three business men in particular – one from Bombay (Mumbai renaming hadn’t happened then) and two from Calcutta (since renamed Kolkata), found a friend who wouldn’t stop doing anything for them.

What was not ordinarily possible till Dr Manmohan Singh, under the prime ministership of Narasimha Rao rolled out a series of economic reforms, necessitated by a grave economic crisis, Dhawan would ensure that nothing would come in the way of securing for his three loyal friends what they wanted. Many would expectedly take exception to the favours thus extended selectively. At the same time, if the three were not enabled to overcome the hold that the then industry leading groups had on private sector economic activities, the country would not be experiencing some extraordinary entrepreneurship marvels of present times.

The worst thing that the industry leaders did in the licence Raj was to deny the possibility of aspiring businessmen to enter some industries by pre-empting licences all of which they would never implement. Business men cosying up to politicians and bureaucrats is not, however, unique to India. It happens everywhere with powerful lobbies working in developed countries on behalf of businesses. Civic society will frown on the practice and media will take note from time to time when limits are crossed and distribution of favours become disturbingly so.

Corporate governance in India was an unknown phenomenon almost till the end of last century. And till the non-resident Indian industrialist Swraj Paul (earned peerage in the UK since) made infructuous attempts to buy into two Delhi based groups – Escorts and the diversified DCM – in the early 1980s, people in general were not aware that in majority of cases families with equity holding of less than 10 per cent stayed in full control of companies. Abuses naturally followed with impunity. Today provoked or on occasions without provocation, the seemingly uninterested politician Rahul Gandhi will invoke two groups Reliance and Adani for amassing great wealth helped by their proximity to Prime Minister Narendra Modi. It will not be anybody’s case that proximity to the powers that be doesn’t help in running businesses. Great risk taking capacity, foresight, execution of very large projects without time and cost escalation, ability to get into sunrise sectors ahead of others and capacity to hire the best talents and empower them count a lot more than connection with people in power.

It will not be out of place to recall here that once when Pranab Mukherjee was told by a party colleague in a somewhat disapproving tone that the Ambanis always got favoured treatment from him, his retort was “get me any number like them, I can assure you I shall extend them the same kind of courtesy.” Once again the message that came out from that unofficial conversation is that knowing people in right places is no guarantee for success in business.

Let’s take the case of the Birla family, which once had free access to Mahatma Gandhi then all through with the ruling political establishment and also the principal opposition parties. In spite of that proximity, it is only one branch of the family headed by Kumar Mangalam Birla that counts today. Businesses of a number of leading groups of the past have either shrank in size beyond recognition or just withered away, thereby underlining the point political patronage is no guarantee of success. Consider several information technology companies, including TCS, Infosys, Wipro and HCL Technologies acquiring global status without any government help or the over a century old Tata Group with presence in automobile to steel to retail reinventing itself to greater glories.

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The country will never be short of people who will always see the presence of an invisible hand (in the present case distribution of patronage by the government) in the meteoric rise of Adani Group. Such vigilance, if it is informed is good for the economy and general public who responding to sustained campaign by official agencies make investment in the equity market either directly or through mutual funds. Investors find reassurance when promoters themselves have substantial holdings in companies. As said earlier, Indian promoters per se managed to exercise total control over companies by pegging their ownership of equity capital as little as possible till the late 1980s. In that kind of environment, promoters enjoyed running companies putting all risk on banks, financial institutions and general investors. But shaken by Swraj Paul episode and in order stave off takeover attempts, all Indian business men started raising holdings in their promoted companies.

What about Gautam Adani, who starting with trading in commodities in the late 1980s made big strides in infrastructure (roads, airports, seaports), energy (both coal fired and renewable) and electricity transmission, gas distribution, mining, FMCG and real estate? Bombay Stock Exchange says promoter holdings in Adani group companies are like this: the flagship Adani Enterprises 72.28 per cent; Adani Ports & SEZ 66.02 per cent, Adani Power 74.97 per cent, Adani Transmission 73.87 per cent; Adani Green Energy 60.5 per cent, Adani Total Gas 74.8 per cent and in the recently listed Adani Wilmar 89.74 per cent.

Remarkably all Adani group company shares are doing very well with their prices continuing to appreciate a lot more than progress of BSE and NSE indexes. A report published the other day by CreditSights, a Fitch arm saying Adani group is “deeply overleveraged” as it is predominantly using debts to invest aggressively across its existing as well as new businesses. Giving a warning, the report says: “In the worst case scenario, overly ambitious debt-funded growth plans could eventually spiral into a massive debt trap, and possibly culminate into a distressed situation or default of one or more group companies.” No doubt many horizontally fast expanding groups here and elsewhere have run into debt traps from where they could never come out. At the same time, there are quite a few examples in India, more importantly the Tata Group and Reliance Industries, both not very long ago carrying the burden of debt mountains, have been able to achieve comfortable debt equity ratio through sustained improvements in cash flow and EBITDA (earnings before interest, tax, depreciation and amortisation.) After having recorded profitable growth of its mobile telephony and data delivery and retail businesses and also announced massive plans for development of green energy and hydrogen, the outlook for Reliance improved so much that Mukesh Ambani could sell small parcels of equity at substantial premium to global giants such as GIC of Singapore, TPG of the US and Aramco of Saudi Arabia. The funds thus mobilised are used both to pare debts and further grow business.

The Economic Times, which saw Adani reply to CreditSights on its describing the group as “deeply overleveraged”, says in a report: “The group’s net debt was ₹1.6 lakh crore by the end of the June quarter this fiscal year, compared with ₹50,200 crore of run-rate EBITDA. Leverage as measured by gross debt to EBITDA ratio was at 3.92x, reflecting a drop in the debt level, Adani group said. The group’s gross debt was ₹1.8 lakh crore.” Whatever Adani may say, funding this scorching rate of growth through greenfield ventures and acquisition of the kind Swiss giant Holcim’s cement business in India for $10.5 billion – in one giant stroke Adani becomes the country’s second largest cement maker after Birla’s Ultratech – will remain a subject of concern.

The other day Gautam Adani made a startling announcement that his group will be building the country’s largest single location alumina refinery of annual capacity of 4 million tonnes in Odisha. (Alumina is an intermediate chemical derived from bauxite mineral used in smelters to make aluminium) The selection of Odisha is natural, for the eastern state owns over half the country’s bauxite deposits of 3.9 billion tonnes. No doubt before he commissions the refinery, he will use bauxite mines in the upstream and build a large smelter in the downstream. There is a point here. Odisha is a non-BJP state and is long under the rule of Biju Janata Dal (BJD). Chief Minister Naveen Patnaik is educated, cultured and suave.

So if anyone’s thesis is that ascendency of Gautam Adani to the extent of becoming Asia’s richest and the world’s third wealthiest is because of his proximity to Modi, then she/he is short on understanding the economics of how business is run. Adani exercising the option provided in the loan agreement that at any point that loan can be converted into equity at face value of share making the way for his acquisition of marquee television channel NDTV no doubt raises the prospect of the channel undergoing change in character of content. But the acquisition cannot be challenged. The watchdog SEBI has not found anything wrong in Adani move.

Independent Journalists Explains NDTV Deal

Change In Ownership Hardly Impacts A Media Group’s Core Ethics

Arun Singh, a Lucknow-based independent journalist, transfer of partial holdings in NDTV poses no threat to the channel or its journalists if they act as professionals

The recent brouhaha over Gautam Adani making a hostile bid to take over NDTV and thereby undermining media freedom, appears a little overplayed. I would call it premature over-reaction. The matter is very simple: NDTV took a loan from the VCPL about a decade ago which it was not able to repay. Seeing some business advantage, the Adani group buys VCPL and gets its holding in NDTV as the new owner! That’s it!

Now if this takeover or the deal is being propagated as an attempt to stop the company and its journalists from carrying on with their ‘revolutionary’ journalism or to prevent them from criticizing the government, then it is laughable.

By and large, the media in the country can broadly be distinguished under two categories: First, those who sell themselves (nowadays termed as ‘Godi Media’) and those who sell news (the term for them is ‘anti-establishment media’). Most media houses are owned by private business groups or, in a few cases, by political parties. The top leadership frames a set of rules and the workforce, in this case journalists, follow these.

For any professional media group to prosper, it is necessary they present news and facts on the basis of the core principles of journalism. Else, they are likely to fall into one of the two categories mentioned above. To my mind, while it is unprofessional to present only the good works of the Government of the day to curry benefits, it is also questionable to report only the negatives of a ‘strong’ and democratically elected government. Your credentials will be in question if you follow a set, premeditated agenda in presentation of news.

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A professional journalist will never compromise with ethics. And if a journalist is not comfortable with a group’s policy or structure, he or she has the option to look for work opportunities elsewhere. In any case, change of ownership has hardly ever changed a company’s policy dramatically. The clientele and viewership, as the market forces for corporate world, decide how a media group moves forward as a credible news supplier.

As far as this deal is concerned, it is not at all going to hamper anyone’s bread and butter or revolutionize journalism to the next level. I repeat, it is just another deal between two corporate houses and if one thinks (like it has been propagated on social media about freedom) that journalists will not be able to carry on with their distinct line of thought, one is fooling oneself.

As told to Rajat Rai