Adani,The Gujarat Story and Some Unanswered Questions

Explore the paradox of Adani's influence in India's growth story! Critics challenge the impact of Vibrant Gujarat Summit deals, while opposition-led states embrace Adani's investments. Could this model spark a nationwide wave?

Shantanu Guha Ray
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An interesting story does the rounds every time the Vibrant Gujarat Summit takes place. 

Critics of Indian PM Narendra Modi bare their fangs to repeat their most favourite question: How many deals Adani signed during the summit have - actually - turned into reality? And more importantly, how much of these deals are helping the state generate growth and employment?

For some strange reason, Gujarat is always under the scanner, so is Adani. 

State summits in India are always under some critical analysis, ostensibly because many memorandums of understanding (MOUs) often fail to take the final shape. And eventually, the desired results also do not take shape.

The Contradictions of Questioning Adani

Actually, questions about the success of the summit are not just aimed at the Gujarat government but - for the last one decade - at the Adani group, the Ahmedabad-based port-to-power-to-airports conglomerate closely linked with the national development model the government has relied on to shape India as the world’s fifth largest economy.

So, the critics want to know how much growth the Adani group has been able to drive in Gujarat? And can this be measured on a national scale? 

In short, they want to know if the growth of the group is limited to states run by the BJP government. They, somehow, have to link the group to India’s ruling party. And, in the process, they miss the tree for the woods.

A brief overview will suffice to reveal the profound reliance of the Grand Old Party, the Congress, on the Adani Group for funding colossal infrastructure projects across states, sparing one the need for any meticulous examination. 

The stark contrast between the perspectives of the Congress central leadership and the state leadership became evident in 2022 when former party president Rahul Gandhi consistently targeted the Adani Group, without any basis or merit, during his political engagements.


Hence, it would be interesting to list here some of the mega deals the opposition-ruled states have struck with the Adani group. 

Here’s the count. 

Rajasthan, ruled by Congress till December 2023, is collaborating with Adani for the state’s largest solar power project. In Himachal Pradesh, the Congress has no problems with the Adani group for its cement plants and apple procurement businesses. Telangana CM Revanth Reddy met Gautam Adani at Davos and signed Mou's worth Rs 12,400 crore. Once he was sworn in as the CM, Reddy had already met the Adani group scion, Karan Adani, once for a mega meeting to discuss investment plans. Adani will invest over Rs 5,000 crore in a 100 MW data centre - powered by renewable energy - and will work closely with the state's MSMEs to create direct and indirect employment opportunities. It will also invest nearly Rs 7000 crore in a host of other projects ranging from power to cement to defence and aerospace parks in the state.

Another Congress-ruled state Karnataka has said it is not averse to the Adani Group, which has pledged investment worth Rs 1 lakh crore over the next seven years in various infrastructure projects in the state. And then, Kerala's Left leadership also has no problem in granting Vizhinjam port projects in the state to Adani Group.

This divergence in approach highlights the discord within the Congress and underscores the lack of cohesion within it while also raising questions about the credibility and consistency of its leadership. But such a situation is not unique to the Congress alone; Kerala’s left leadership too had no qualms about granting the Vizhinjam port project to the Adani Group.


It is, therefore, evident that political parties, particularly the Congress, exhibit contrasting behaviour and rhetoric when it comes to the Adani Group. While they criticise the Group when targeting the BJP-led central government, they actively seek investments for their respective states. 

Adani, Key to Gujarat’s Progress?

Yet, the critics ask questions, they have their right. They not only ask but also - in some cases - draw both inspiration and parallels from developments in some of the opposition-ruled states in India, like West Bengal, where the governments have even stepped back after forging partnerships with the Adani group. 

India’s political cognoscenti have tagged such decisions as political. They say in some places in India, it has become routine to sidetrack Adani, cancel deals struck with him and then silently blame the industrialist for his perceived closeness with Modi. Worse, such political decisions have often clouded industrial growth in those states, big projects taking a backseat. Yet, state governments remain oblivious to the failure of such cancelled projects and its possible impact on the state’s employment generation. Very few remember that multiple industrial successes in states help a nation assert itself forcefully on the global stage.

By criticising the annual summit in Gujarat, a state along India’s west coast, critics of the Indian PM have wanted to do their annual recheck of the financial stability of the Adani group and its commitments to Gujarat. After all, the Indian PM once served as the CM of Gujarat and it is in that very state the Adani group is based.

But if the critics juggle some numbers, they would realise the insurmountable level of investments by Adani in Gujarat could be magical for any state. 


For the record, the Adani group has invested over Rs 1 lakh crore in Gujarat at over 150 locations (FY24), providing direct jobs to over 30,000 people in the process. The total number of people employed by the conglomerate is around 45,000. Would the fortunes of any other Indian state not change if such humongous investments were made by one industrial group?

Industry-friendly Gujarat has gained a significant number of investments from the Adani group, the most important of them being the Mundra Port, India’s largest and most-advanced commercial port. It would be worthwhile to mention that the port was shaped on a land that was barren a quarter of a century ago. Converting the wastelands and salt flats into India’s largest and most efficient port and a major hub of renewable energy and the associated value chain was a tough call, a tough job.

So how did it work?

First came a jetty, which laid the foundation for a port. This gave rise to an entire power and industrial ecosystem, spanning solar modules, wind turbines, thermal power, and edible oils. Mundra today has a 4,600 MW plus power generation capacity, the largest solar PV (photovoltaic) cell and modules unit with 4 GW capacity. 

It also has one of India’s biggest greenfield copper refineries, a unit to manufacture India’s biggest and one of the world's largest wind turbine generators. The infrastructure and ecosystem has been developed for Gujarat, it also helps a developing nation.

Over the past 25 years, Mundra Port’s total contribution to the state and national exchequer has been more than Rs 2.25 lakh crore. The group has invested over Rs 70,000 crore in Mundra, with more than 7.5 crore man-days of employment generated at the port. 


The group has more assets in Gujarat, these include the Dahej and Hazira ports and the Tuna terminal. It handles operations at the Sardar Vallabhbhai Patel International Airport in Ahmedabad, city gas distribution networks and CNG fuel stations, and several transmission lines to evacuate green energy. 

Adani’s investments have changed the face of Gujarat’s economy, the state has also benefited from some big buck investments from companies like Reliance. 

The Adani group is now developing large-scale renewables and green hydrogen in Gujarat with investments of over Rs 2 lakh crore over the next five years, there exists the potential to generate over 1 lakh direct and indirect jobs.  

The Adani Group is building the world’s largest renewable energy (RE) park with a capacity of at least 17 GW at Khavda, 150 km from Mundra, and plans to commission its first capacity soon. The RE park will be visible from the space.

It is also developing a 2 MTPAMMTPA project of green hydrogen and downstream ecosystems in the Kutch region. The group is also investing in a PVC project at Mundra with an initial production capacity of 1.0 million MT of PVC resin along with caustic soda and other byproducts. Once in operation, the project will promote domestic polymers and cut exports. The group is adding up to 12 MTPA clinker & 15 MTPA cement capacity at Sanghipuram and Mundra.

Vibrant Gujarat has worked because of a significant number of Gujarati businessmen who helped create this annual conference for investors so as to accelerate the state’s economic growth.

Gautam Adani, the self-made son of a small-time local trader, was in the forefront of that business community which helped the state government develop what came to be known as the Gujarat model. The new model - effectively - displaced the creaky, state-driven model of earlier governments. The summit and its success helped India’s progress in the global marketplace. And Gujarat became the destination of best choice for many industrialists from India and abroad.

So should other Indian states replicate the Gujarat model and see if they can cultivate a handful of top industrialists to give their best investments to the state? It would be a better model than drilling holes in the Gujarat model.

Two things will happen. Fortunes of the states will boom, so will that of the nation. Critics must know economic growth is the best route to generate cash and drive employment. 

About the Author:

Shantanu Guha Ray.jpgShantanu Guha Ray is the Asia Editor of Central European News, UK and a columnist with MoneyControl. A Wharton-trained journalist with over two and a half decades of experience. His investigative prowess shone through early on when he scooped the coal and Delhi airport scams before official reports. Apart from this, his reporting on asbestos won him the Washington Press Club award.

A human rights champion, he received the Ramnath Goenka and Laadli awards for his poignant cricket and cervical cancer reporting, while his commitment to environmental justice secured him the WASH award. Prepare to be engaged by the stories of this award-winning journalist who consistently uncovers truths, both nationally and internationally.