Business · Companies · 49 mins ago
Adani rejects claim it cut Tarali project cost to reduce obligations
Adani Group says the lower figure was only for site surveys for its Tarali pumped-storage project in Maharashtra.
The 1,500-megawatt project’s full cost was set at ₹5,675 crore, while the online clearance proposal listed ₹56.75 crore.
A report said the revised figure could reduce a required wildlife conservation contribution from ₹227 crore to about ₹2.27 crore.
The group denies it cut the project cost to lower that contribution, saying the survey costs were about 1% of the full project cost.
It says the project is on private, non-forest land and does not affect protected areas or wildlife corridors.
The Union environment ministry directed a state investigation after a complaint alleging the project cost was incorrectly stated.
The Congress has called for a parliamentary committee probe, while the state forest department has begun investigating.
Adani Group rejected allegations that Adani Green Energy sought to cut the stated cost of its Tarali pumped storage project to reduce statutory conservation obligations.
The group said the ₹56.75 crore figure in an online proposal covered only site investigations and surveys, while the project’s total cost was ₹5,675 crore.
A report cited by Congress said the lower figure could reduce a wildlife conservation contribution from ₹227 crore to about ₹2.27 crore.
The Union Environment Ministry directed Maharashtra’s State Forest Department on November 6 to investigate the matter, and the department initiated a probe.
Congress leader Jairam Ramesh called the reported revision a “scandal of gigantic proportions” and renewed calls for a parliamentary investigation.
- Who
- Adani Green Energy, part of the Adani Group, is at the centre of the allegations; Congress has criticised the reported cost revision.
- What
- The dispute concerns whether the Tarali project’s stated cost was cut from ₹5,675 crore to ₹56.75 crore to reduce conservation obligations. Adani says the lower figure covered only site investigations and surveys.
- When
- The complaint was filed on October 30, 2026; the Environment Ministry directed an investigation on November 6, and the dispute was reported on November 13.
- Where
- The 1,500-MW Tarali pumped storage project is in Maharashtra’s Satara district.
- Why
- Critics say the reported cost reduction could lower a wildlife conservation contribution. Adani says the figure was for preliminary investigations, not the project’s total cost.
Congress
Adani Group
Purpose of the cost figure
Congress
Congress cited a report alleging that the project cost was cut by 99%, reducing the required conservation contribution.
Adani Group
The group said ₹56.75 crore represented only site investigation and survey costs, not the full project cost.
Conservation obligations
Congress
Congress called the reported revision a scandal and renewed its demand for a Joint Parliamentary Committee probe.
Adani Group
Adani said the project is on private, non-forest land and does not affect protected areas or a notified tiger corridor.
A complaint alleging an incorrect project cost was registered with the Prime Minister’s grievance portal and Maharashtra’s Aaple Sarkar portal.
The Union Environment Ministry directed Maharashtra’s State Forest Department to investigate the matter on priority.
Congress criticised the reported cost revision, and the Adani Group rejected the allegation that it was intended to reduce conservation-related costs.
- Project capacity
- 1,500 MW
- Project location
- Satara district, Maharashtra
- Project cost cited by the State Board for Wildlife
- ₹5,675 crore
- Site investigation and survey figure cited in the online proposal
- ₹56.75 crore
- Reported conservation contribution
- Reduced from ₹227 crore to about ₹2.27 crore according to the report cited in the articles
3 sources
Maharashtra forest department seeks Adani’s response on Tarali project cost, Adani denies lowering project cost
Adani Group rejects allegations of lowering Tarali PSP project costs to cut statutory obligations
‘Scandal of gigantic proportions’: Congress on Adani slashing Maharashtra power project cost by 99%
What people are saying
Since site investigation costs are around 1 per cent of project costs, therefore, clarification of the project, Rs 56.75 crore, representing solely the site investigations and survey costs, for the online proposal was provided
It points to a scandal of gigantic proportions, reinforcing the demand for a JPC into its operations
Modani has slashed its project cost for a 1500 MW pumped storage power project in Maharashtra. A project which was sanctioned last year for ₹5,675 crore is now stated in an affidavit to have a cost of ₹56.75 crore. It is a 99% reduction!