Do Adani's woes matter for India's clean energy transition?
Gautam Adani and his companies lost tens of billions of dollars and their stock plummeted after the businesses were accused of fraud and stock price manipulation
BENGALURU, India (AP) — When the bidders for India's multibillion-dollar incentive to make solar components were announced in early March, the absence of corporate behemoth Adani Group was conspicuous.
The group — which set up a gigantic factory to make solar equipment in 2016, more than tripled its capacity to make solar panels since 2017 and have begun making silicon materials needed to convert the sun rays to electricity — was expected to “bid in a large way,” said Chiranjeev Saluja, the managing director of Premier Energies, an Indian solar components manufacturer.
The absence is another indication of the holding pattern the group has been in since U.S. short-selling firm Hindenburg Research alleged in late January that the businesses had engaged in fraud and stock price manipulation. Spooked investors dumped tens of billions of dollars in shares, while the company's purported proximity to Indian Prime Minister Narendra Modi has dominated politics in past weeks.
The group has a considerable stake in India's clean energy future: Adani’s renewable energy ambitions account for 10% of the country’s clean energy goals. But some analysts say the group's woes won’t hurt India’s energy transition, especially in the medium and long term. And with a big government-favored player like Adani forced to scale down, companies that were reluctant to bid for clean energy projects in India are likely to step up now, leading to a more competitive market and bigger investments in green energy in India, market watchers say.
