Adani Group rejects allegations of lowering Tarali PSP project costs to cut statutory obligations

New Delhi: The Adani Group has rejected allegations that its renewable energy arm, Adani Green Energy Ltd (AGEL), sought to reduce the estimated cost of its Tarali pumped storage project (PSP) to lower statutory obligations, saying the figures cited in an online forest and wildlife clearance proposal related only to preliminary site investigations and surveys.

The group spokesperson in a statement said the online proposal was submitted solely for site investigation purposes, while the State Board for Wildlife (SBWL) had considered the project's total cost at Rs 5,675 crore.

"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," the group said, responding to a media report.


The Indian Express reported that Adani Green Energy slashed the declared cost of its 1,500-MW Tarali pumped storage project in Maharashtra from Rs 5,675 crore to Rs 56.75 crore through a revised affidavit, reducing its mandatory wildlife conservation contribution to the Sahyadri Tiger Reserve from Rs 227 crore to about Rs 2.27 crore, a move that has prompted the Centre to order a probe.

The conglomerate rejected allegations that the downward revision was intended to reduce conservation-related costs, arguing that the project does not involve any protected forest or wildlife areas.

"The Tarali PSP is situated entirely on private, non-forest land and 3.2 kms away from the Koyna wildlife sanctuary," it said.

The group said the project falls outside the notified buffer zone of the Sahyadri Tiger Reserve and does not affect or lie along the tiger corridor or any notified Eco-Sensitive Zone (ESZ).

"The project does not cause diversion of any protected areas, any reserve forest or notified Eco Sensitive zone," it said.