OCCRP report alleges massive coal supply scam involving Adani
COAL & MINING

OCCRP report alleges massive coal supply scam involving Adani

Revelations by the Organised Crime and Corruption Reporting Project (OCCRP) about the low quality of coal supplied by the Adani group have caused a stir in political and bureaucratic circles. The issue of low-quality coal and the resulting environmental degradation has been repeatedly highlighted in recent times in Tamil Nadu. This expos? alleges that at least 24 shipments, which arrived on the Tamil Nadu coast between January and October 2014, were initially priced as low-quality coal but were ultimately sold by the Adani group to the State's power utility at triple the cost.

On January 9, 2014, the bulk carrier MV Kalliopi L docked at Ennore port after a two-week voyage from Indonesia. It was carrying 69,925 tonnes of coal destined for the State's power company, according to OCCRP. However, the paperwork for the cargo took a more circuitous route, passing through the British Virgin Islands and Singapore. During this journey, the price of the coal more than tripled, reaching $91.91 per tonne. The quality also inexplicably changed from low-grade steam coal to the clean, high-quality version sought by power companies, OCCRP claimed.

Before reaching Tangedco, the paperwork for the shipment passed through a middleman: Supreme Union Investors, a company registered in the tax haven of the British Virgin Islands. Supreme Union Investors issued an invoice for the same shipment to Adani Global PTE Singapore " the group's regional headquarters" that listed the unit price as $33.75 per tonne and the quality as "below 3,500" kilocalories per kilogram (kcal/kg), considered low-grade, OCCRP reported. But when Adani Global issued its invoice to Tangedco for the shipment a month later, the unit price had dramatically increased to $91.91 per tonne and the coal was listed as having a calorific value of 6,000 kcal/kg, a high-quality form, relatively free of impurities, it added.

The evidence comes from multiple sources, including invoices and banking documents from several jurisdictions, details of investigations by India's Directorate of Revenue Intelligence (DRI), leaked documents from a key Indonesian coal supplier for Adani, and a trove of documents obtained from Tangedco, OCCRP stated.

Revelations by the Organised Crime and Corruption Reporting Project (OCCRP) about the low quality of coal supplied by the Adani group have caused a stir in political and bureaucratic circles. The issue of low-quality coal and the resulting environmental degradation has been repeatedly highlighted in recent times in Tamil Nadu. This expos? alleges that at least 24 shipments, which arrived on the Tamil Nadu coast between January and October 2014, were initially priced as low-quality coal but were ultimately sold by the Adani group to the State's power utility at triple the cost. On January 9, 2014, the bulk carrier MV Kalliopi L docked at Ennore port after a two-week voyage from Indonesia. It was carrying 69,925 tonnes of coal destined for the State's power company, according to OCCRP. However, the paperwork for the cargo took a more circuitous route, passing through the British Virgin Islands and Singapore. During this journey, the price of the coal more than tripled, reaching $91.91 per tonne. The quality also inexplicably changed from low-grade steam coal to the clean, high-quality version sought by power companies, OCCRP claimed. Before reaching Tangedco, the paperwork for the shipment passed through a middleman: Supreme Union Investors, a company registered in the tax haven of the British Virgin Islands. Supreme Union Investors issued an invoice for the same shipment to Adani Global PTE Singapore the group's regional headquarters that listed the unit price as $33.75 per tonne and the quality as below 3,500 kilocalories per kilogram (kcal/kg), considered low-grade, OCCRP reported. But when Adani Global issued its invoice to Tangedco for the shipment a month later, the unit price had dramatically increased to $91.91 per tonne and the coal was listed as having a calorific value of 6,000 kcal/kg, a high-quality form, relatively free of impurities, it added. The evidence comes from multiple sources, including invoices and banking documents from several jurisdictions, details of investigations by India's Directorate of Revenue Intelligence (DRI), leaked documents from a key Indonesian coal supplier for Adani, and a trove of documents obtained from Tangedco, OCCRP stated.

Next Story
Resources

Mahindra selects ABB’s PixelPaint for premium paint options

ABB’s innovative PixelPaint technology has been selected by Mahindra & Mahindra (M&M), India’s leading SUV manufacturer, for its new electric vehicle paint facility. The technology, which uses an award-winning paint head similar to an inkjet printer, will begin serial production in 2025. “Our revolutionary PixelPaint technology can apply large areas of uniform color as well as the tiniest details with complete accuracy, without delaying the production line or the need for manual intervention,” said Joerg Reger, Managing Director of ABB Robotics Automotive Business Line. “By d..

Next Story
Infrastructure Transport

PJTL Lenders Approve Rs 10.20 billion One-Time Settlement

Lenders to the heavily indebted Panipat Jalandhar NH 1 Tollway (PJTL) have agreed to a one-time settlement for their Rs 34 billion dues. They accepted a Rs 10.20 billion all-cash offer from the promoters, the Canada-based Roadis Group and Hyderabad's Soma Enterprises, resulting in a 30% recovery, according to sources familiar with the deal. The account had been affected by farmers' agitation in the area for several years and was eventually declared a Non-Performing Asset (NPA). Several months ago, the National Asset Reconstruction Company (NARCL) had proposed to take over the debt, but the p..

Next Story
Infrastructure Urban

Capgemini to invest Rs 10 billion in new Chennai facility

Capgemini revealed plans to develop a new facility in Chennai, committing to invest approximately Rs 10 billion over the next three years. The IT and consulting services firm indicated that the 5,000-seat facility in Chennai is expected to be completed by April 2027. The campus will incorporate advanced energy and water-efficient technologies, utilize recycled materials, and implement rainwater harvesting during construction. Capgemini noted that the new facility is intended to become a prime destination for top-tier talent in southern India. It will be equipped with state-of-the-art IT in..

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram