NEW DELHI – Gautam Adani’s ambitious renewable energy project, a cornerstone of India’s clean energy goals, is under scrutiny following a US indictment accusing Adani and key executives of paying $265 million in bribes to secure power supply contracts in India.
The Vision:
Adani Green’s energy park in Gujarat, set to be five times the size of Paris, aims to produce 50 gigawatts by 2030—approximately 10% of India’s clean energy target. Described by Adani as a “symbol of sustainability and national pride,” the park is central to Adani Group’s $100 billion renewable energy investment plan.
The Setback:
The indictment, naming Adani, his nephew Sagar Adani, and Managing Director Vneet S Jaain, has sparked a 36% plunge in Adani Green’s stock, erasing $9.6 billion in market value. The group denies the allegations, calling them baseless, but investors like TotalEnergies (19.8% stake) have paused future investments.
The Stakes:
Adani Green’s rapid growth, with capacity expanding from 2 GW in 2018 to 11.2 GW by September 2024, underscores its importance to India’s renewable energy ambitions. Yet, allegations of corruption, tied to key projects in Gujarat and Rajasthan, cast a shadow over its potential.
Despite the turmoil, GQG Investors (4.2% stake) remains optimistic, citing the sound fundamentals of Adani Green. However, with international fundraising potentially hampered and skepticism from global partners, Adani’s “renewable energy marvel” faces mounting challenges.
The road ahead for Adani Green hinges on legal outcomes and the company’s ability to maintain investor confidence while advancing its sustainability goals.
