Mahua Moitra Continues Attacking Adani Amid Cash-For-Query Row, Reports Deny Claim Of 'Overpriced Dhamra Terminal'

Trinamool Congress (TMC) MP Mahua Moitra directed fresh criticism towards the Adani Group on Monday (30 October), a day after reports surfaced concerning Adani's involvement in financing the Dhamra LNG facility in Odisha.

In a post on X, Moitra wrote, "Stop sweating Mr. Adani & getting IOCL to play with words. IOCL could have build 5MMPTA terminal for ₹5000 cr like in Ennore. Instead you got Dhamra without tender & they entered into ₹46500 cr offtake agreement with you."

Notably, Moitra is currently under investigation by the Lok Sabha's Ethics Committee for targeting Adani group through questions in the house in exchange of cash and luxury gifts.

She claimed that the central government is displaying favoritism towards the Adani Group by utilising Public Sector Units (PSUs). She suggested that IOCL could have independently established a 5 million metric tons per annum (MMTPA) terminal similar to the one in Ennore for Rs 5,000 crore.

Instead, Moitra alleged that Adani obtained the Dhamra facility without a proper tendering process and subsequently entered into an off-take agreement amounting to Rs 46,500 crore.

Moitra pointed out that Indian Oil Corporation Limited (IOCL) and GAIL had successfully constructed a 5 MMTPA terminal in Ennore at a cost of Rs 5,000 crores.

According to her, IOCL and GAIL could have undertaken the construction of the Dhamra Port in Odisha but opted out of the bidding process, instead paying Adani Rs 46,500 crores to construct a terminal with a capacity of 4.5 MMTPA.

The MP raised concerns about why two PSUs, which could have theoretically executed the project for a fraction of the cost, decided to pay Adani significantly more for the construction.

Moitra further highlighted that IOCL and GAIL entered into an off-take agreement, committing to purchase gas from Dhamra at a fixed price for the next two decades, Business Today reported.

Moitra argued that Adani profited from an inflated construction price and secured a long-term contract to recover the investment from public sector entities over the next 20 years, even utilising this guarantee to enter into a joint venture with France's Total Energy.

This recent critique by Mahua Moitra follows reports by news agency PTI, suggesting that the Dhamra LNG import facility was primarily funded by the Adani Group's promoters, with no financial commitments or guarantees from IOCL and GAIL, who essentially acted as tenants.

Sources indicated that IOCL and GAIL (India) Ltd. leased capacity in the new terminal at rates lower than those at an older, depreciated facility in Dahej, Gujarat.

The report also contradicted Moitra's claims regarding the project's cost, stating that the Dhamra LNG terminal's expenses amounted to Rs 6,450 crores, slightly higher than the Ennore project's costs.

It further asserted that neither cash nor bank guarantees were provided upfront or during the project by IOCL and GAIL, and the sources dismissed the assertion that IOCL and GAIL disbursed Rs 46,500 crores to Adani.

Instead, they argued that the project had been entirely financed by equity and debt from Dhamra LNG terminal shareholders.

The Adani Group has yet to release a statement addressing the allegations related to the Dhamra facility. The ongoing controversy reflects a broader issue of scrutiny surrounding the relationships between corporate entities and public institutions in India.