look news india
Several shares of Adani Group witnessed a significant intra-day fall today following the news that Adani Group is supplying poor quality and cheap coal to state-owned power generation companies instead of clean and expensive coal. However, this decline went away by the end of the session.
It was reported in the Financial Times that the newspaper had seen evidence collected by the Organized Crime and Corruption Reporting Project (OCCRP) alleging that the Adani Group was artificially inflating coal prices.
After this news, shares of the group's flagship company Adani Enterprises fell by 1.4 percent. However, by the end of the day, the stock recovered from the lows and ended the day with a gain of 0.63 per cent. Similarly, shares of Adani Ports also fell by 1.5 per cent intraday. However, as the session progressed, the prices of these shares also increased.
Citing several invoices, the Financial Times published a report in January 2024 that the Adani Group had purchased coal from Indonesia that contained 3,500 calories per kilogram. This low-quality coal was purchased from Indonesian company PT Jonlin at a price of $28 per tonne. In fact, a company owned by the Tamil Nadu government was supposed to provide coal with 6,000 calories per kilogram. The Adani Group sold this coal at $86 per tonne.
Adani Group denied the allegations and said the supplied coal was tested by multiple agencies at various levels and passed each test. Therefore the allegation of supply of low quality coal is not only baseless and unfair but also completely false.