Hello,
The Assam government has locked itself into a power contract with the Adani group that could cost taxpayers thousands of crores of rupees. All for electricity the state may never use.
Months before state elections, the BJP-led government awarded a 3,200 MW power contract to Adani Power. The catch? The central electricity authority's estimates show Assam's coal-based power needs could be met with far lesser capacity. The government, in an internal communication The Collective accessed, has committed to paying for the rest of the capacity that will sit idle.
Our conservative estimate puts the bill for unused power at over Rs 12,500 crore over five years. If economic growth projections fall short, that figure could climb past Rs 19,000 crore.
Here's the twist: Assam's own Chief Secretary warned, in a national newspaper, about the dangers of exactly this kind of long-term coal contract, calling them "structural hurdles" that impose "financial stress and contractual rigidity" on states. He was concerned that these deals hamper states’ ability to onboard renewable energy sources.
His state had already signed one.
Who pays in the end? The citizens, through higher electricity tariffs or through the budgetary leak.
Read the full investigation, featuring internal government documents, tender exemptions quietly handed to Adani, and the Chief Secretary's full response, on our website.
And, remember, such investigations require immense effort and resources (besides some courage, I guess). Fund The Reporters’ Collective so journalists like me can continue doing such reportage that holds the powerful to account. Click below to support us.
Warm Regards,
Shreegireesh Jalihal
Reporter
The Reporters’ Collective