Adani Group headed by multi-billionaire Gautam Adani, has once again proved that he is the most influential industrialist in the country and can call shots in any state, irrespective of which party is in power.
When YSR Congress party president Y S Jagan Mohan Reddy was in power, Adani group got several contracts for various infrastructure projects – ports, green power and mining.
Such was the clout of Adani that Telugu Desam Party president N Chandrababu Naidu did not dare cancel the contracts for solar power supply project awarded to Adani group during the Jagan regime.
In the latest instance, the Naidu government has approved the tenders for beach sand mining and awarding of the contract to a company belonging to the Adani Group. The tenders were originally floated by the previous YSRCP government.
As per Jagan Mohan Reddy’s earlier plans, both tenders have gone to Adani. The file has reached the government, and only the formal orders declaring Adani the successful bidder remain to be issued.
What raises eyebrows is that coalition leaders, who had earlier vehemently opposed the “developer model,” have now gone ahead with the same tenders.
In January 2024, the Jagan government invited tenders for private developer selection for mining beach sand minerals over 909.85 hectares in Gara, Srikakulam district, and 90.15 hectares in Bheemili, Visakhapatnam district.
Then APMDC MD and Mines Department Director V.G. Venkata Reddy prepared the Request for Proposal (RFP) under the directions of higher authorities. At the time, there was a huge uproar from environmentalists and opposition parties.
They alleged the tenders violated central mining laws and were framed to benefit Adani, putting state interests at stake. Some of them even filed a case in the state high court challenging the tenders.
On March 1, 2019, the Centre banned private companies from mining beach sand minerals, citing their strategic importance. Only central/state government entities were allowed. The Department of Atomic Energy issued guidelines specifying that in joint ventures, APMDC must hold 76% and the private partner 24%.
However, under pressure to benefit Adani, the Jagan government introduced the “developer model” — APMDC would retain only supervisory powers while the private developer received 92% share, leaving just 8% for APMDC.
Though the high court initially stayed the tenders, the petitioners later withdrew the case for reasons known to them. Recently, APMDC finalized Adani Alluvial Heavy Minerals Pvt. Ltd. as the successful bidder.
Under the deal, Adani gets 92% stake in beach sand mining while APMDC retains 8%. Observers say this proves that regardless of which party rules the state, Adani’s interests remain protected.
