The Adani Group has issued a strong and comprehensive rebuttal following media reports questioning the financial disclosures of its renewable energy subsidiary, Adani Green Energy Ltd (AGEL). The controversy centered around the proposed Tarali Pumped Storage Project (PSP) in Maharashtra, with allegations suggesting that the corporate giant attempted to lower its declared project cost to reduce statutory wildlife conservation contributions and mandatory financial obligations.
Addressing the claims head-on, the conglomerate clarified that the disputed financial figures cited in regulatory filings pertained strictly to preliminary site investigation expenses rather than the comprehensive capital expenditure of the multi-crore infrastructure undertaking.
Unpacking the Controversy: From ₹5,675 Crore to ₹56.75 Crore
The debate erupted after a prominent English daily published an investigative report alleging that Adani Green Energy had submitted a revised affidavit lowering the estimated cost of the 1,500 MW Tarali Pumped Storage Project from ₹5,675 crore down to ₹56.75 crore. Critics and environmental commentators claimed that this drastic downward revision was a deliberate maneuver to shrink mandatory compensatory payouts—specifically reducing the mandatory wildlife conservation contribution designated for the nearby Sahyadri Tiger Reserve from an estimated ₹2.27 billion.
The report further alleged that following these discrepancies, central regulatory authorities had ordered a formal probe into the filing process.
Official Adani Spokesperson Clarification: Survey Costs vs. Total Capital Expenditure
Refuting the allegations of financial evasion or regulatory manipulation, an official spokesperson for the Adani Group explained that the figure of ₹56.75 crore reflected a specific operational line item rather than the overall capital outlay of the renewable energy installation.
“Since the cost of field investigation is about one per cent of the total project cost, the project amount of ₹56.75 crore was clearly mentioned in the online proposal as only the cost of field investigation and survey,” the group spokesperson stated.
The corporate entity emphasized that the comprehensive capital expenditure for the Tarali PSP has consistently been estimated at ₹5,675 crore—a valuation previously vetted and acknowledged by the State Board for Wildlife (SBWL) during preliminary administrative reviews. The online Forest and Wildlife Clearance proposal in question was submitted exclusively to secure administrative permissions for on-site geological surveys, topographical mapping, and preliminary soil testing, which inherently account for a fraction of the overarching budget.
Environmental Status: Private Land and Buffer Zone Compliance
Addressing concerns regarding ecological impact and statutory conservation dues, the Adani Group firmly rejected suggestions that the cost adjustment was designed to bypass environmental safeguards or evade payments destined for the Sahyadri Tiger Reserve.
According to the project developers, the Tarali Pumped Storage Project is planned and located entirely on private, non-forest land, avoiding the direct acquisition or disruption of protected forest reserves. Furthermore, technical documentation indicates that the project site is situated approximately 3.2 kilometers away from the Koyna Wildlife Sanctuary, safely outside the notified buffer zones and protected tiger corridors of the Sahyadri Tiger Reserve. Developers maintain that the infrastructure layout does not encroach upon or disrupt designated eco-sensitive zones, ensuring full alignment with environmental protection norms.
As central regulatory bodies review procedural filings, the Adani Group maintains that its documentation remains transparent, adhering strictly to standard industrial protocols for renewable energy development across India.