Jackpot for Adani: Green Signal For Building Desalination Plant
Jackpot for Adani: Green Signal For Building Desalination Plant
The Indian government has just given Adani Ports and SEZ the green signal to develop an 8,481 hectares coastal plot in Western India for building a huge desalination plant. The clearance process had not progressed under the previous government. But, patience is a virtue and tycoon Gautam Adani is clearly reaping its benefits.
Adani is part of the Gautam Adani conglomerate. The environment ministry has just granted environmental and coastal regulation zone clearance for the mammoth Mundra Special Economic Zone. This is a huge industrial hub which has also made plants to build effluent treatment plants.
But when it comes to such developments, the controversies are not far behind. Allegations are rife by rivals that Adani was favored with cheap land. While the billionaire tycoon denies this, the rapid growth of Mundra has certainly set tongues wagging.
Adani has transformed Mundra into an industrial zone. It is now home to India's largest commercial port and private power plant. Adani's star has risen with ascension of PM Modi to power. Shares in Adani Enterprises rose by 70% last year. With the environmental clearance, Adani Ports' stock closed up by 6.82% outpacing the 1.27 percent rise in benchmark.
India now seeks to encourage FDI and grow exports. SEZ are exempt from labour laws along with import and excise duties. Adani Ports and SEZ(APSEZ) is now India's largest port developer indicating it has secured environmental and coastal regulation zone clearance for 8,481 hectares SEZ in Mundra, Gujarat from the Union Ministry for Environments and Forests (MoEF). The clearance will now enable APSEZ to set up primary infrastructure to enable companies to set up business units in the SEZ.
Mundra's SEZ has faced its share of troubles. In January, the SC granted interim stay on the Gujarat HC order shutting down the 12 operational units of the industrial enclave run by the firm in Mundra. The Gujarat HC had passed the order in response to a PIL by Navinal villagers who held that the company had violated environment norms through land allotments to individual units without mandatory environmental clearance under the Environmental Impact Assessment Notification (2006).
With the grant of environmental and coastal regulation clearance, “all issues related to the same now stand resolved” a company statement issued to the media said. With the latest clearance, Adani has scored a victory for his conglomerate. His success is certain given his recent triumph. Adani's earlier bid for a mining project in Queensland had not gained environmental clearance and financing for the same from Deutsch Bank fell through. This time around, the business tycoon is facing no such hurdles. With Adani Ports charging ahead, one hopes that other companies, especially public sector undertakings in this field do not get left behind. Public sector companies deserve as much support if not more to catch up with their private rivals. State PSUs need more infrastructure and financing as well to stave off challeneges from the private sector.
