'Adani Group's promised investments may shrink, see delay'

At 'Invest Karnataka-2022 Global Investors Meet' held in Bengaluru, the company had announced its plans to invest up to Rs 1L cr across different sectors in K'taka

Karnataka government is optimistic about the investments coming through the Adani Group though the ongoing crisis of the company, resulting from the US-based short-selling firm Hindenburg's report, could delay and shrink its promised investments in Karnataka.

At the 'Invest Karnataka-2022 Global Investors Meet' (GIM) held in Bengaluru in November 2022, the company had announced its plans to invest up to Rs 1 lakh crore across different sectors in Karnataka.

"There could be a delay in these investments materialising. The quantum of investments could even come down by half," Minister for Large and Medium scale industries Murugesh Nirani told DH. However, Nirani was optimistic that the investments would come through albeit the delay.

"I am one hundred per cent certain that the investments will be made," he stressed.

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"Companies are given a five-year time period to materialise mega projects. "The Adani company could recover in this time," Nirani said.

Ever since the Hindenburg report was made public alleging massive corruption by the Gautam Adani-led company, the group's fortunes have seen a sharp decline.

A major part of the investment is expected to go into the renewable energy sector, Nirani added.

At the GIM, Adani Ports and SEZ Limited CEO Karan Gautam Adani announced that the company, being a top player in the solar power sector, would invest more in the renewable energy sector. Adani Green Energy already has a presence in solar energy in Karnataka with several commissioned projects across the state. It also holds control of Udupi Power Corporation Ltd (UPCL) which is a subsidiary of the Adani Group.

The Gautam Adani-led company had in principle agreed to invest in an international airport near Kittur apart from a tunnel near Sakaleshpur to reduce the distance between Bengaluru and Mangaluru, Nirani had told mediapersons earlier.