Decision to not lay stone for Adani Data Park fuels speculation

Visakhapatnam: The sudden decision to not lay the foundation stone for the ambitious Adani Data Park project in Visakhapatnam after announcing the programme by Chief Minister Y S Jagan Mohan Reddy on March 3 coinciding with the Global Investors’ Summit (GIS) has fuelled speculation.

Officials attribute the preoccupation of billionaire Gautam Adani, the founder-chairman of Adani Group during the GIS. The stone for the coveted project, for which 130 acres has been allotted a long ago and all clearances have been procured, is delayed due to some reason or the other since long.

Despite the stout refusal, the Adani Group has suffered a lot of damage and losses due to impact on its stock prices following the sensational claims made by US-based Hindenburg in its report accusing the Indian corporate of resorting to large-scale manipulations and malpractices to inflate its stock prices.

Had the government gone ahead with the foundation-stone laying ceremony as announced, that would have made it the first big ticket project to be launched by the Adani Group post-Hindenburg controversy.

During the erstwhile TDP Government, on the eve of general elections, then Chief Minister N Chandrababu Naidu had laid the stone with a proposed investment of Rs 70,000 crore. However, the YSRCP after forming the government downsized the project with a total investment of Rs 14,634 crore by reviewing certain conditions.

Visakhapatnam Metropolitan Region Development Authority (VMRDA) approved the layout for the project in May. A road has also been laid to the project site. The project, once fully operational, is expected to provide jobs to nearly 25,000. A solar power plant is also part of the project.

The project, sources said, envisages development of a data centre in an area of 82 acres, a world-class business centre in an area of 11 acres and a skill development university with courses to create a high-end talent pool in nine acres as part of the revised plan.

The GIS was addressed by CEO of Adani Ports and Special Economic Zone (APSEZ) CEO Karan Adani, son of Gautam Adani, who stated while narrating their investments plans in Andhra Pradesh, that they are also working on developing 400 MW of Data Centre in Visakhapatnam.

In his address, he said they are investing in renewable energy projects worth 15,000 MW in Andhra Pradesh across Visakhapatnam, Vizianagaram, Anantapur, Kadapa and Kurnool.

According to Adani Junior, they have invested over Rs 20,000 crore and created direct jobs for more than 18,000 and indirect employment for 54,000 people.

Karan Adani in his address said “Adani Group’s commitment to your (Chief Minister Y S Jagan Mohan Reddy’s) vision of port-led industrial development is reflected in our actions. Our partnership with the Government of Andhra Pradesh for ports is an exemplary model of public-private partnership. Currently, Adani Group operates two largest private ports in Andhra Pradesh i.e., Krishnapatnam and Gangavaram, with a total capacity of 100 million tonnes per annum.”