ADANIPOWER

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to fix extra spacing in fifth paragraph.

By Shritama Bose

MUMBAI, Sept 19 (Reuters Breakingviews) - Gautam Adani is catching a moment of relief. India's securities regulator cleared the tycoon and units of his $152 billion infrastructure conglomerate of stock manipulation charges raised by a short seller in 2023. However, its fortunes won't improve much so long as U.S. charges hang over the group.

The Securities and Exchange Board of India on Thursday said the transactions involving Adani Enterprises ADEL.NS, Adani Ports APSE.NS and Adani Power ADAN.NS between 2018 and 2023 flagged by Nathan Anderson's now-disbanded firm Hindenburg Research did not violate the rules at the time on related party transactions.

The order closes the loop on a more than two-year-old saga marked by a $150 billion reduction in Adani group companies' market value and muddled by allegations of conflict of interest against former SEBI Chair Madhabi Puri Buch, who left her role in February.

The clean bill of health from the watchdog now led by Tuhin Kanta Pandey hardly changes the group's local standing. Indian mutual funds managing some $850 billion in assets were wary of what they see as the group's opacity and its rapid growth before Hindenburg struck, and remain so: Adani Enterprises stock is about 30% lower than at the start of 2023.

A more potent overhang is the U.S. Justice Department's indictment of the tycoon in a $265 million Indian bribery scheme. The Adani group denies any wrongdoing but the charges have complicated the conglomerate's fundraising prospects. Though BlackRock BLK.N subscribed to bonds an Adani unit issued in April to finance an acquisition, that borrowing came at an increased cost than its past deals.

Non-U.S. banks including Barclays BARC.L and DBS DBSM.SI lent $250 million to Adani's airport and ports units last month, Bloomberg reported citing unnamed people familiar with the transactions. But the U.S. issue stalled Adani's efforts to cut its dependence on Indian banks, which hold 47% of its 2.9 trillion rupees ($32.8 billion) debt. The group has returned to equity markets but only for carefully controlled issuances to institutional investors, not the public.

If anything, its stateside problems are widening. A subsidiary of Adani Enterprises has been named among 43 Indian exporters in a U.S. complaint over dumping of solar exports, a person familiar with the situation told Reuters Breakingviews. Similar investigations into Southeast Asian companies have attracted prohibitively high tariffs.

The resumption of trade talks this week between India and the U.S. may smooth the path for Adani to eventually draw a line under the Justice Department's probe, perhaps through a settlement. Until then, its other victories are superficial.

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CONTEXT NEWS

The Securities and Exchange Board of India on September 18 dismissed allegations of stock manipulation against billionaire Gautam Adani and his group of companies made by U.S. short-seller Hindenburg Research.

The capital markets regulator began investigating the group's flagship Adani Enterprises and its ports and energy units in 2023 after Hindenburg accused them of using tax havens and failing to disclose transactions between related parties. SEBI officials said in the order that the transactions under review, which were carried out between 2018 and 2023, did not qualify as related party transactions under the rules at the time.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Sept 18 (Reuters) -

• INDIA'S SEBI- FINAL ORDER IN MATTER OF HINDENBURG ALLEGATIONS AGAINST ADANI GROUP WITH RESPECT TO TRANSACTIONS WITH ADICORP ENTERPRISES

• SEBI: DISPOSE OF THE INSTANT PROCEEDINGS AGAINST ADANI GROUP WITHOUT ANY DIRECTION

• SEBI: DISPOSE OF THE INSTANT PROCEEDINGS AGAINST ADANI PORTS, ADANI POWER, ADICORP ENTERPRISES, GAUTAM ADANI, RAJESH ADANI

• SEBI: ALLEGATIONS OF NON-DISCLOSURE, TAKING SHAREHOLDER NOD FOR FINANCIAL TRANSACTIONS PERTAINING TO ADANI POWER, ADANI PORTS COULD NOT BE ESTABLISHED

Further company coverage: ADEL.NS

(([email protected];;))

By Florence Tan and Nidhi Verma

SINGAPORE/NEW DELHI, Sept 16 (Reuters) - Sanctioned tanker Spartan has discharged Russian crude oil at India's Mundra port despite a ban by the Adani Group on entry of blacklisted ships at the terminal, ship tracking data from LSEG and Kpler showed on Tuesday.

The Suezmax tanker discharged 1 million barrels of Urals crude at Indian refiner HPCL-Mittal Energy Ltd's (HMEL) Mundra terminal, Kpler data showed.

Spartan, formerly known as SCF Samatlor, has been blacklisted by the European Union and Britain for breaching sanctions in transporting Russian oil.

The ship is managed by Dubai-based Nova Shipmanagement and owned by Citrine Marine, Equasis data showed.

HMEL and Nova Shipmanagement did not immediately respond to requests for comment outside office hours. Reuters has not been able to find any contact information for Dubai-based Citrine Marine.

On Monday, another sanctioned vessel carrying Russian oil, Noble Walker, changed course to India's Vadinar port.

The Noble Walker, carrying about 1 million barrels of Russian crude for HMEL, was until Friday headed to Mundra, according to shipping reports and data from LSEG and Kpler.

Last week, Adani issued orders barring entry of vessels that are sanctioned by the EU, Britain and the United States at its 14 ports, including Mundra in Western India. Indian refiners HMEL and Indian Oil Corp IOC.NS use the port for oil imports, including from Russia.

(Reporting by Florence Tan in Singapore and Nidhi Verma in New Delhi; Editing by Jamie Freed)

(([email protected];))

By Nidhi Verma

NEW DELHI, Sept 15 (Reuters) - Sanctioned vessel Noble Walker carrying Russian oil has changed course to India's Vadinar port after the country's Adani Group banned entry of blacklisted ships at its Mundra port, ship tracking data showed on Monday.

The Noble Walker, carrying about a million barrels of Russian crude for Indian refiner HPCL Mittal Energy Ltd, was until Friday headed to Mundra, according to shipping reports and data from LSEG and Kpler.

The vessel has been blacklisted by the European Union and Britain for breaching sanctions in transporting Russian oil.

HMEL did not respond to a Reuters email seeking comment. Reuters has not been able to find any contact information for Mancera Shipping which owns Noble Walker, according to LSEG data.

Last week, Adani issued orders barring entry of vessels that are sanctioned by the EU, Britain and the United States at its 14 ports including Mundra in western India. Indian refiners HMEL and Indian Oil Corp IOC.NS use the port for oil imports, including from Russia.

India has become the biggest buyer of seaborne Russian oil after Western sanctions imposed on Moscow for its 2022 invasion of Ukraine.

However, India has been tightening surveillance of vessels and transactions involving Russian supplies.

Russian oil is mostly shipped by a so-called shadow fleet after the United States, EU and Britain imposed a raft of sanctions targeting vessels, traders and companies among others to curb Moscow's oil revenue, its economic lifeline.

Another sanctioned tanker, Spartan, a suezmax carrying 1 million barrels of Russian crude, was anchored near Mundra port on Monday. The vessel was supposed to discharge its crude at the port on Monday, Kpler data showed.

(Reporting by Nidhi Verma. Additional reporting by Beijing bureau. Editing by Florence Tan and Mark Potter)

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Adani Power Ltd ADAN.NS:

• ADANI POWER SIGNS 25-YEAR POWER SUPPLY AGREEMENT WITH BIHAR STATE POWER GENERATION COMPANY

• ADANI POWER TO INVEST $3 BILLION TO DEVELOP 2400 MW COAL-BASED POWER PLANT IN BIHAR

• ADANI POWER AIMS TO FULLY COMMISSION THE PLANT IN 60 MONTHS

Further company coverage: ADAN.NS

** Shares of power generation major Adani Power ADAN.NS gain 2.6% to 650.75 rupees

** Co bagged an order from MP Power Management Company to set up an 800-gigawatt (GW) coal power plant in Madhya Pradesh state

** Cumulative order value from MP Power Management Company to ADAN now stands at 210 billion rupees ($2.38 billion)

** Stock eyes busiest trading session since mid-Jan, volumes at 13.5x the 30-day avg

** Stock up ~23% so far in 2025

($1 = 88.1260 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

Sept 6 (Reuters) - Adani Power Ltd ADAN.NS:

• INDIA'S ADANI POWER SIGNS AGREEMENT WITH BHUTAN'S DRUK GREEN POWER CORP TO SET UP 570 MW WANGCHHU HYDROELECTRIC PROJECT- STATEMENT

Source text: [ID:]

Further company coverage: ADAN.NS

(Reporting by Nidhi Verma)

(([email protected];))

By Sudarshan Varadhan and Sethuraman N R

SINGAPORE/NEW DELHI, Sept 4 (Reuters) - Coal prices in India will fall after revisions to taxes on the fuel that generates nearly 75% of the country's electricity, industry officials and analysts said, as a higher consumption tax is offset by the removal of a carbon levy.

That could push up domestic consumption at the expense of imports, they said, putting further pressure on already plunging global coal prices.

India's finance minister hiked consumption levies on coal to 18% from 5% on Wednesday. However, buyers no longer have to pay a flat carbon tax of 400 Indian rupees ($4.57) a metric ton, known as a cess.

"We anticipate an increase in demand for locally mined coal as the elimination of the cess makes it cheaper despite the higher consumption tax," said Ashis Kumar Pradhan, senior analyst at consultancy Wood Mackenzie.

Prices of power plant-grade fuel sold by Coal India COAL.NS, which produces three-quarters of Indian output, will now be 8.1%-19.8% cheaper for utilities and 5.6%-16.7% cheaper for other users such as smelters, according to Reuters calculations based on Coal India and Wood Mackenzie data.

The calculations tallied with estimates provided by the Coal Consumers Association of India to Reuters.

India is the world's second largest coal importer behind China, but imports are expected to fall as the price of grades typically shipped in from top supplier Indonesia will be 3.5% higher after the tax change, Pradhan said.

The lower effective taxes on coal are expected to help generators burning the fossil fuel to cut costs by 0.12 rupees per kilowatt hour, said Vikram V, analyst at Moody's ICRA unit.

That compares with ICRA's estimates of a 0.10 rupee per kWh decline in generation costs for solar power developers following a cut in tax rates on panels to 5% from 12%.

Coal India and the federal ministries for finance, power and coal did not respond to requests for comment.

The move will also benefit power producers and help revive plunging sales by state-run Coal India, which has grappled with tepid power demand and a rise in renewable power generation.

Ashok Khurana, vice chairman at India's Association of Power Producers, said the decision would help reduce generating costs.

"However its impact on consumer tariffs would depend on distribution companies," he added.

The move could result in lower tariffs if distribution companies pass on reduced procurement costs to consumers.

If the costs are not passed on, it could help improve the finances of debt-laden, state government-owned distribution companies, Khurana said.

($1 = 87.5060 Indian rupees)

(Additional reporting by Nikunj Ohri in New Delhi; Editing by Jan Harvey)

(([email protected]; +65 91164984;))

Sept 2 (Reuters) - Adani Power Ltd ADAN.NS:

• RECEIVES APPROVAL FOR DHIRAULI MINE OPERATIONS

• PEAK PRODUCTION AT 6.5 MTPA, 5 MTPA OPEN CAST BY FY27

• DHIRAULI BLOCK TO SUPPLY TO 1,200 MW MAHAN POWER PLANT

Source text: ID:nBSE3krMGg

Further company coverage: ADAN.NS

(([email protected];;))

** Shares of Adani Power ADAN.NS rise 2% to 613 rupees

** Thermal power co receives letter of award for 800 MW thermal power plant project from MP Power Management Company

** Project to be set up in Anuppur, Madhya Pradesh state; investment pegged at 105 bln rupees ($1.20 bln)

** Stock up 15.5% YTD

($1 = 87.5060 Indian rupees)

(Reporting by Rudra Pratap Singh in Bengaluru)

(([email protected]))

NEW DELHI, Aug 30 (Reuters) - Adani Power ADAN.NS and Torrent Power TOPO.NS have bagged orders to cumulatively set up 2,400 megawatt (MW) coal power plants from the Indian central state of Madhya Pradesh, the two companies said in separate statements.

MP Power Management Company has awarded a contract to Torrent Power to supply 1,600 MW from a new coal-based power plant that would require an investment of 220 billion rupees ($2.51 billion), according to a statement by the company.

Adani Power would supply power in the central Indian state from a new 800 MW thermal power plant with an investment of 105 billion rupees ($1.20 billion), its fourth major power supply order in the last 12 months, the company said in a separate statement.

Prime Minister Narendra Modi's government aims to lift coal-based power capacity by 80 GW to more than 290 GW by 2032, an increase of over one-third, to ensure reliable, round-the-clock supply.

($1 = 87.5060 Indian rupees)

(Reporting by Nikunj Ohri
Editing by Gareth Jones)

(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

Aug 29 (Reuters) - Adani Power Ltd ADAN.NS:

• ADANI POWER LTD - RECEIVES LOA FOR 25-YEAR ELECTRICITY PROCUREMENT

• ADANI POWER LTD - TO INVEST $3 BILLION IN PLANT AND INFRASTRUCTURE

• ADANI POWER - CO TO SET UP 2,400 MW GREENFIELD ULTRA SUPER CRITICAL PLANT AT PIRPAINTI

Source text: ID:nBSE3Mtp63

Further company coverage: ADAN.NS

(([email protected];))

Aug 11 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - L&T SECURES ULTRA-MEGA CONTRACT FROM ADANI POWER

• LARSEN & TOUBRO GOT ORDER WORTH OVER 150 BILLION RUPEES

• LARSEN AND TOUBRO - CONTRACT FOR 6,400MW THERMAL POWER FOR CARBONLITE SOLUTIONS BUSINESS

Further company coverage: LART.NS

(([email protected];))

By Sethuraman N R

Aug 7 (Reuters) - Indian billionaire Gautam Adani's group will build and operate a $3 billion coal-fired power plant in Bihar state with a 2.4 gigawatt capacity, it said on Thursday, the biggest coal plant constructed in India via private investment in a decade.

The first of three units at the plant will be commissioned within four years, with the last expected to come online in five years' time, Adani Power ADAN.NS said.

The move marks a return of private investment to India's greenfield coal-based power projects after more than a decade of absence.

Prime Minister Narendra Modi's government is targeting increasing the country's coal-based capacity by 80 GW, or more than a third, by 2032 to more than 290 GW, saying it was necessary to ensure reliable, round-the-clock power.

Coal's share in India's power mix is starting to significantly decline due to a quick buildout of renewables, following rapid growth in coal use after the COVID-19 pandemic.

The world's second largest coal producer and consumer still generates about three quarters of its electricity from coal annually, however, unlike top coal user China which has progressively reduced its dependence on the polluting fuel.

The project in Pirpainti, eastern Bihar, will be Adani Power's largest new plant since its 3.3 GW Tiroda project was fully commissioned in 2014.

The company will supply power at just over 6 Indian rupees ($0.0684) per kilowatt hour to Bihar's state-run distribution companies from the Pirpainti plant, it said in a statement.

Adani currently operates 18.1 GW of coal-fired power capacity in eight states and 12 plants across the country, and won bids to build and operate a 1.5 GW plant in the northern Uttar Pradesh state in May and a 1.6 GW capacity facility in Maharashtra in September 2024.

($1 = 87.6975 Indian rupees)

(Reporting by Sethuraman NR; Writing and additional reporting by Sudarshan Varadhan; Editing by Jan Harvey)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** India's Adani Power ADAN.NS climbs 3.6% to 590.95 rupees

** Thermal power co says it will consider proposal for stock split when board meets on August 1

** ADAN did not disclose further details

** Stock extends YTD gains to ~12%

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

July 8 (Reuters) - Adani Power Ltd ADAN.NS:

• ADANI POWER - COMPLETION OF ACQUISITION OF VIDARBHA INDUSTRIES POWER APPROVED BY NCLT

• ADANI POWER LTD - ON TRACK FOR 30,670 MW CAPACITY BY 2029-30

• ADANI POWER LTD - BUYS VIPL FOR 40 BILLION RUPEES

Source text: ID:nBSE2ZRjxN

Further company coverage: ADAN.NS

(([email protected];))

June 27 (Reuters) - Bharat Heavy Electricals Ltd BHEL.NS:

• BHEL- GOT LETTER OF AWARD (LOA) FROM ADANI POWER FOR SIX (6) THERMAL UNITS OF 800 MW

• BHEL- ORDER VALUE AT 65 BILLION RUPEES

Source text: ID:nnAZN41VU8F

Further company coverage: BHEL.NS

(([email protected];))

Adds details and background on U.S. indictment, group's power capacity and capex plans

June 24 (Reuters) - Adani Group Chairman Gautam Adani on Tuesday denied any wrongdoing in response to U.S. allegations of bribery, telling shareholders that no individual from the group has been charged under the U.S. Foreign Corrupt Practices Act (FCPA).

"Despite all the noise, the facts are that no one from the Adani Group has been charged with violating the FCPA or conspiring to obstruct justice," Adani said at the company’s annual general meeting.

"Even in the face of the storms and relentless scrutiny, the Adani Group has never backed down," he said.

In November, U.S. authorities indicted Adani and several executives, alleging they paid bribes to secure Indian power contracts and misled U.S. investors. The Adani Group has rejected the allegations as "baseless" and said it was cooperating with legal processes.

Adani Group and its 13 offshore investors have been facing an investigation by the Securities and Exchange Board of India (SEBI) since Hindenburg Research in 2023 alleged the group's improper use of tax havens. The group has consistently denied any wrongdoing.

The company, which is constructing the world's largest renewable energy park in Khavda, western India, aims to install 50 gigawatts (GW) of renewable capacity by 2030.

With combined thermal, renewable and pumped hydro assets, Adani Group expects to reach a total power generation capacity of 100 gigawatts by 2030, Adani said.

Adani also announced a record capital expenditure plan, saying the group expects to invest between $15 billion and $20 billion annually over the next five years.

(Reporting by Sethuraman NR and Hritam Mukherjee in Bengaluru; Editing by Anil D'Silva)

(([email protected]; X: @MukherjeeHritam;))

NEW DELHI, May 10 (Reuters) - India has removed the chairman of the Solar Energy Corp of India (SECI) with immediate effect, the federal ministry of personnel said in a notice on Saturday, just over a month ahead of the scheduled end of his tenure.

The former top bureaucrat at India's environment ministry was appointed SECI chairman in June 2023, and was scheduled to end his tenure as SECI chief next month.

The government did not provide a reason for dismissing Rameshwar Prasad Gupta. Gupta declined comment.

During Gupta's tenure, SECI had barred India's Reliance Power from participating in competitive tenders for renewable energy projects. It withdrew the order a month later in December after a court directive.

SECI also came under fire last year for a solar deal involving SECI and billionaire Gautam Adani, which was signed before Gupta became chairman.

U.S. prosecutors had indicted Adani and seven other executives in November for alleged involvement in a bribery and securities fraud scheme. Adani had denied the allegations as baseless, and SECI denied any wrongdoing.

He had also announced last year SECI's plans to go public, but said it had yet to take a final call on the size of the initial public offering.

(Reporting by Sudarshan Varadhan and Sarita Chaganti Singh)

(([email protected]; +65 91164984;))

Changes date; Adds Adani Green's response in paragraph 6, updates stock moves in paragraph 9

May 5 (Reuters) - Representatives for Indian billionaire Gautam Adani met officials from U.S. President Donald Trump's administration to seek dismissal of criminal charges in an overseas bribery probe, with a resolution possible in a month, Bloomberg News reported.

In November, U.S. authorities indicted Adani and his nephew, Sagar Adani, alleging they paid bribes to secure power supply contracts, and misled U.S. investors during fund raises there.

The U.S. financial regulator summoned the duo, alleging they misled investors on compliance during a $750 million Adani Green ADNA.NS bond sale in the United States.

The billionaire's aides are trying to make the case that his prosecution does not align with Trump's priorities and should be reconsidered, Bloomberg News reported on Sunday, citing sources familiar with the matter.

The discussions began earlier this year and have picked up in recent weeks, with a resolution possible within a month if the momentum continues, the report said.

Adani Green, in a statement on Monday, reiterated it was not part of any proceedings, but it did not directly comment on the report about the meetings. It had recently said its review of the indictment found no non-compliance or irregularities.

The Justice Department and White House declined comment to Bloomberg on the report and did not respond to Reuters for comment outside business hours.

Adani Enterprises, the group's flagship firm, also did not respond to a request for comment. The group has previously denied any wrongdoing.

Shares of Adani Group's nine Indian listed companies rose between 1.7% and 10.5% on Monday, amid a 0.6% increase in the broader market.

The indictment has erased about $13 billion in market value from Adani Group's nine listed firms.

(Reporting by Bipasha Dey, Nandan Mandayam and Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)

(([email protected];))

May 2 (Reuters) - Bangladesh has substantially reduced its outstanding dues to India's Adani Power ADAN.NS related to a power-supply deal and the company is confident of recovering the roughly $900 million still remaining, its chief financial officer said.

Bangladesh has struggled to pay its dues per the deal, signed in 2017, as imports got costly since the Russia-Ukraine conflict in 2022 and amid the domestic political turmoil last August that led to the ouster of the country's prime minister.

As a result, Adani had halved supply last year but CFO Dilip Jha said the company has resumed full supply since as the country's monthly payments started covering some of the dues.

"We are supplying full power to Bangladesh ... the payment we are receiving now is more than the monthly billing," Jha said in a post-earnings call with analysts on Thursday.

"We are hopeful that not only will we continue to receive payments equivalent to the current month's billing, but that the old outstanding dues will also be liquidated."

The company said Bangladesh has paid nearly $1.2 billion of the roughly $2 billion totally billed to the country.

(Reporting by Sethuraman NR in Bengaluru; Editing by Savio D'Souza)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

May 1 (Reuters) - India has extended the mandate for its imported coal-based power plants to operate at full capacity until June 30, a government circular showed on Thursday.

(Reporting by Sarita Chaganti Singh and Manvi Pant; Editing by Mrigank Dhaniwala)

(([email protected]; +918447554364;))

April 30 (Reuters) - Adani Power Ltd ADAN.NS:

• ADANI POWER Q4 CONSOL PAT 25.99 BILLION RUPEES

• ADANI POWER Q4 CONSOL TOTAL REVENUE 145. 36 BILLION RUPEES

Source text: [ID:]

Further company coverage: ADAN.NS

(([email protected];;))

By Sarita Chaganti Singh

NEW DELHI, April 18 (Reuters) - India is planning to ease its nuclear liability laws to cap accident-related penalties on equipment suppliers, three government sources said, in a move mainly to attract U.S. firms that have been holding back due to the risk of unlimited exposure.

The proposal by Prime Minister Narendra Modi's government is the latest step to expand nuclear power production capacity by 12 times to 100 gigawatts by 2047 as well as provide a fillip to India in trade and tariff negotiations with the U.S.

A draft law prepared by the department of atomic energy removes a key clause in the Civil Nuclear Liability Damage Act of 2010 that exposes suppliers to unlimited liability for accidents, the three sources said.

India's atomic energy department, the prime minister's office and the finance ministry did not respond to requests seeking comment.

"India needs nuclear power, which is clean and essential," said Debasish Mishra, chief growth officer at Deloitte South Asia.

"A liability cap will allay the major concern of the suppliers of nuclear reactors."

The amendments are in line with international norms that put the onus on the operator to maintain safety instead of the supplier of nuclear reactors.

New Delhi is hoping the changes will ease concerns of mainly U.S. firms like General Electric Co GE.N and Westinghouse Electric Co that have been sitting on the sidelines for years due to unlimited risks in case of accidents.

Analysts say passage of the amended law is crucial to negotiations between India and the U.S. for a trade deal this year that aims to raise bilateral trade to $500 billion by 2030 from $191 billion last year.

Modi's administration is confident of getting approval for the amendments in the monsoon session of parliament, set to begin in July, according to the sources.

Under the proposed amendments, the right of the operator to compensation from the supplier in case of an accident will be capped at the value of the contract. It will also be subject to a period to be specified in the contract.

Currently, the law does not define a limit to the amount of compensation an operator can seek from suppliers and the period for which the vendor can be held accountable.

LAW GREW OUT OF BHOPAL DISASTER

India's 2010 nuclear liability law grew out of the 1984 Bhopal gas disaster, the world's deadliest industrial accident, at a factory owned by U.S. multinational Union Carbide Corp in which more than 5,000 people were killed.

Union Carbide agreed to pay an out-of-court settlement of $470 million in damages in 1989.

The current liability law effectively shut out Western companies from a huge market, and also strained U.S.-Indian relations since they reached a deal on nuclear cooperation in 2008.

It also left U.S. firms at a disadvantage to Russian and French companies whose accident liability is underwritten by their governments.

The draft law also proposes a lower liability cap on small reactor operators at $58 million, but is unlikely to alter the cap for large reactor operators from the current level of $175 million, the three sources said.

India is betting big on nuclear power to meet its rising energy demand without compromising on net-zero commitments, for which it proposes to allow private Indian companies to build such plants.

Indian conglomerates like Reliance Industries RELI.NS, Tata Power TTPW.NS, Adani Power ADAN.NS and Vedanta Ltd VDAN.NS have held discussions with the government to invest around $5.14 billion each in the sector.

($1 = 85.6320 Indian rupees)

(Reporting by Sarita Chaganti Singh, Editing by Raju Gopalakrishnan.)

(([email protected];))

Recasts throughout with information from Adani Ports and background

April 17 (Reuters) - Adani Ports APSE.NS, India's largest private port operator, said on Thursday it will buy an Australian deep-water coal export facility for an enterprise value of about A$3.98 billion ($2.54 billion), as it aims to grow its global presence.

As a part of the deal, Adani Port will issue 143.8 million shares to Carmichael Rail and Port Singapore Holdings to buy Abbot Point Port Holdings, which owns and operates the North Queensland Export Terminal, the port operator said.

North Queensland Export Terminal, which is a deep-water coal export terminal with a capacity of 50 million tonnes per annum, was purchased by Adani Ports in 2011 before it was sold to the Adani family in 2013 in a $2 billion deal.

As part of the deal, Adani Ports will also assume other non-core assets and liabilities on Abbot Point Port's balance sheet, which the company will realize within a few months of the deal, it added.

The terminal, which is located on Australia's east coast, is well-positioned for strong growth, supported by rising capacity, medium-term contract renewals, and future opportunities in green hydrogen exports, Adani Ports CEO Ashwani Gupta said.

The company aims to take the port's EBITDA growth to A$400 million within four years, Gupta said.

($1 = 1.5684 Australian dollars)

(Reporting by Shivani Tanna in Bengaluru; Editing by Shailesh Kuber)

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Updates March 21 story with statement from India commerce ministry

By Sarita Chaganti Singh, Shivangi Acharya

NEW DELHI, March 24 (Reuters) - Indian Prime Minister Narendra Modi's government has decided to let lapse a $23 billion program to incentivize domestic manufacturing, just four years after it launched the effort to woo firms away from China, according to four government officials.

The scheme will not be expanded beyond the 14 pilot sectors and production deadlines will not be extended despite requests from some participating firms, two of the officials said.

Some 750 companies, including Apple supplier Foxconn and Indian conglomerate Reliance Industries, signed up to the Production-Linked Initiative scheme, public records show.

Firms were promised cash payouts if they met individual production targets and deadlines. The hope was to raise the share of manufacturing in the economy to 25% by 2025.

Instead, many firms that participated in the program failed to kickstart production, while others that met manufacturing targets found India slow to pay out subsidies, according to government documents and correspondence seen by Reuters.

As of October 2024, participating firms had produced $151.93 billion worth of goods under the program, or 37% of the target that Delhi had set, according to an undated analysis of the program compiled by the commerce ministry. India had issued just $1.73 billion in incentives - or under 8% of the allocated funds, the document said.

News of the government's decision to not extend the plan and specifics about the lag in payouts are being reported by Reuters for the first time.

Modi's office and the commerce ministry, which oversees the program, did not respond to requests for comment. Since the plan's introduction, manufacturing's share of the economy has decreased from 15.4% to 14.3%.

In a separate statement on Saturday, the commerce ministry said participating firms had produced $163 billion worth of goods as of November 2024. The ministry did not say if the program would be allowed to expire but said PLIs have "incentivized domestic manufacturing, leading to increased production, job creation, and a boost in exports."

Foxconn, which now employs thousands of contract workers in India, and Reliance didn't return requests for comment.

Two of the government officials told Reuters the end of the program did not mean Delhi had abandoned its manufacturing ambitions and that alternatives were being planned.

The government last year defended the program's impact, particularly in pharmaceuticals and mobile-phone manufacturing, which have seen explosive growth. Some 94% of the nearly $620 million in incentives disbursed between April and October 2024 were directed to those two sectors.

In some instances, some food-sector companies that applied for subsidies weren't issued them due to factors such as "non compliance of investment thresholds" and companies "not achieving stipulated minimum growth," according to the analysis. The document did not provide specifics, though it found production in the sector had exceeded targets. Reuters could not determine which companies the analysis referred to.

But Delhi had previously acknowledged problems and agreed to extend some deadlines and increase payment frequency after complaints from PLI participants. One of the Indian officials, who spoke on condition of anonymity to discuss confidential matters, said that excessive red tape and bureaucratic caution continued to stymie the scheme's effectiveness.

As an alternative, India is considering supporting certain sectors by partially reimbursing investments made to set up plants, which would allow firms to recover costs faster than having to wait for production and sale, another official said.

Trade expert Biswajit Dhar at the Delhi-based Council for Social Development think-tank, who has said Modi's government needs to do more to attract foreign investment, said the country might have missed its moment.

The incentives program was "possibly the last chance we had to revive our manufacturing sector," he said. "If this kind of mega-scheme fails, do you have any expectation that anything is going to succeed?"

The stalling of manufacturing comes as India tries to circumvent the trade war unleashed by U.S. President Donald Trump, who has criticised Delhi's protectionist policies.

Trump's threat of reciprocal tariffs on countries like India that have a trade surplus with the U.S. means the export sector is increasingly challenged, said Dhar. "There was some amount of tariff protection ... and all that is going to be slashed."

HITS AND MISSES

The program was introduced at an opportune time for India: China, which for decades had been the world's factory floor, was struggling to maintain production amid Beijing's zero-COVID policy.

The U.S. was also seeking to reduce its economic reliance on an increasingly assertive Beijing, prompting many multinationals to pursue a "China plus one" policy of diversifying production lines.

With its large youthful population, lower costs and a government regarded as relatively friendly to the West, India seemed set to benefit.

India has become a global leader in pharmaceutical and mobile-phone production in recent years.

The country produced $49 billion worth of mobiles in the 2023-24 fiscal year, up 63% from 2020-21, government data show. Industry leaders like Apple now manufacture their newest and most sophisticated cellphones in India, after having started with low-cost models.

Similarly, pharmaceutical exports nearly doubled to $27.85 billion in 2023-24 from a decade ago.

But the success was not repeated in the other sectors, which include steel, textiles and solar panel manufacturing. India faces fierce competition from cheaper rivals like China in many of those fields.

In the solar industry, for instance, eight of the 12 companies that signed up to PLI are unlikely to meet their targets, according to a December 2024 analysis of the sector prepared by the renewable energy ministry and seen by Reuters. The eight firms included units of Reliance, Adani Group and the Indian conglomerate JSW.

The analysis found that the Reliance entity would only meet 50% of the production target it had been set for the end of the 2027 fiscal year, when the solar PLI scheme will expire. It also said that the Adani business had not ordered equipment it needed to manufacture the solar panels and that JSW had not "done anything yet."

JSW declined to comment, while Adani did not respond to questions.

The commerce ministry said in a January letter to the renewables ministry seen by Reuters that it would not agree to its counterpart's request to extend the scheme beyond 2027 as doing so "will result in unfair benefit for non-performers."

The renewables ministry said in response to Reuters' questions that it was committed to "fairness and accountability," as well as "ensuring that only those who meet their targets are rewarded."

In the steel sector, investment and production also lag targets. Fourteen of the 58 projects approved for PLIs have been withdrawn or removed due to lack of progress, according to the undated program-wide analysis.

($1 = 86.4425 Indian rupees)

(Reporting by Shivangi Acharya and Sarita Chaganti Singh; Editing by Aftab Ahmed and Katerina Ang)

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NEW DELHI, March 22 (Reuters) - India's key manufacturing scheme received investments of nearly $19 billion as of November last year, the trade ministry said on Saturday, a day after Reuters reported New Delhi will let the $23-billion incentive program lapse amid disappointing results.

The incentive scheme will not be expanded beyond 14 pilot sectors and production deadlines will not be extended despite requests from some participating firms, Reuters has reported.

The trade ministry, in a statement, said private firms had produced goods worth nearly $163 billion under the scheme, 90% of the target until fiscal year 2024/25, and the government had in turn paid out less than $1.7 billion in incentives.

The payouts make for 8% of the scheme's intended subsidies, Reuters had reported.

Projects are implemented over two to three years and claims are usually made after the first year of production, as per the statement. "Hence, most of the projects are at implementation stage and will be filing incentive claims in due course."

The trade ministry's statement did not mention the Reuters report.

($1 = 85.9900 Indian rupees)

(Editing by Mark Heinrich)

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By Dhwani Pandya and Arpan Chaturvedi

MUMBAI/NEW DELHI, March 21 (Reuters) - Indian billionaire Gautam Adani's group is battling allegations in court this month that its planned multibillion-dollar power plant and a luxury housing complex breach environment laws, adding to its many legal headaches.

Such allegations have often troubled Adani projects in India and abroad. In Australia, the group battled a seven-year activist campaign against its Carmichael coal mine, and construction at its seaport in south India was halted for months in 2022 due to protests over coast erosion.

Now, Adani Group is defending itself against allegations made in India's National Green Tribunal that it started work on a $2 billion power plant without waiting for environmental clearance. This case is set for a hearing on Friday.

The lawsuit by an activist says the site for the plant is within a forest in the Mirzapur district of Uttar Pradesh. The suit seeks to halt the project saying it would devastate the area and impact wildlife, court papers show.

Adani denied in a March 6 filing that any of its activities at the site are environmentally damaging. "The project land is not a forest land," Adani also said in the filing.

State pollution control official Reetesh Kumar Tewari told Reuters that Adani stopped work at the site after it was sent a November warning notice about the construction.

Adani Group did not respond to an e-mail seeking comment. Debadityo Sinha, the activist who filed the lawsuit, declined comment citing ongoing legal proceedings.

Legal cases in India can drag on for years, and environment-related challenges often emerge as a sticking point for big companies.

The latest legal tussles come just as India's government has asked a local court to deliver a summons from the U.S Securities and Exchange Commission to group founder Gautam Adani over his alleged role in a $265 million bribery scheme. Adani has denied those allegations and said they are baseless.

LUXURY PLANS AND SLUM REDEVELOPMENT

Adani is pursuing two big projects in Mumbai, one of world's most expensive real estate markets, and both are being challenged over environmental issues.

Its luxury residential project in the coastal suburb of Bandra is being challenged by another activist, Zoru Bhathena, and a residents group who are trying to halt the project.

They are arguing in a case at the high court in Mumbai that the land Adani plans to use for the project has been reclaimed from the sea and remains a legally protected coastal region where no construction is allowed.

India's environment ministry and the Adani Group disagree, telling the court in February the land is no longer classified as a protected area following a rule change in 2019, non-public court filings reviewed by Reuters show.

The court has described the Bandra case as involving a "vital issue relating to environment protection". The next hearing on the matter is set for March 27.

Adani's other high-profile project in Mumbai is the redevelopment of Dharavi slum, one of the group's most ambitious undertakings. It started work there after winning a $619 million redevelopment bid two years ago.

Dharavi, about three-quarters the size of New York's Central Park and where 1 million people need to be rehoused, was featured in the 2008 Oscar-winning movie "Slumdog Millionaire". Its open sewers and shared toilets, close to Mumbai's international airport, stand in contrast to India's development boom across residential, commercial and infrastructure sectors.

The Adani-led Dharavi redevelopment company, now called Navbharat Mega Developers, was allotted 256 acres (104 hectares) of salt-pan lands in September to build rental housing for Dharavi residents as part of the project.

But activist lawyer Sagar Devre has filed a public interest litigation in the Mumbai high court against Prime Minister Narendra Modi's government, alleging it changed rules in August 2024 to allow residential development on salt-pan lands - ecologically sensitive areas that help in flood protection.

The court has not yet heard the case, but the rule change has been a topic of political wrangling, with India's Congress Party saying it is an example of Modi changing policy to help Adani - allegations of impropriety both have repeatedly denied.

Spokespersons for Modi's federal government did not respond to a request for comment on the salt-pan land issue.

(Reporting by Dhwani Pandya in Mumbai and Arpan Chaturvedi in New Delhi; Additional reporting by Saurabh Sharma; Editing by Aditya Kalra and Tom Hogue)

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By Sarita Chaganti Singh and Arpan Chaturvedi

NEW DELHI, March 13 (Reuters) - The Indian government has asked a local court to deliver a summons issued by the U.S. Securities and Exchange Commission to billionaire Gautam Adani over alleged securities fraud and a $265 million bribery scheme, according to a letter seen by Reuters.

The summons, which was issued under Hague Service Convention that does not allow the serving of legal documents directly to defendants in India, would require Adani or his legal counsel to appear in the case in the United States, Indian lawyers said.

Adani Group has denied the allegations, describing them as "baseless" and vowing to seek "all possible legal recourse".

India's federal ministry of law has asked a district court in Ahmedabad, Gujarat, Adani's home state, to deliver the summons to him, the letter dated February 25 shows.

"The summons seems to be for appearance in a court in New York. If service is effected through the Indian court, the respondents will have to appear," said Arshdeep Khurana, a criminal lawyer in India.

Adani and India's law ministry did not immediately respond to requests for comment.

The summons does not imply an extradition risk for the businessman, who oversees a sprawling conglomerate spanning airport construction to media, another lawyer said.

"Extradition proceedings only come in to the picture if the U.S. court issues warrants of arrest," said Malak Bhatt, founding partner at NM Law Chambers.

Reuters reported on February 18 that the SEC was making efforts to serve its complaint on Gautam Adani and his nephew, Sagar Adani, and was seeking help from India to do so.

Reuters could not determine if the summons against Adani's nephew has also been processed.

India's Prime Minister Narendra Modi last month said he did not discuss the Adani case with U.S. President Donald Trump during his visit to Washington.

(Reporting by Sarita Chaganti Singh and Arpan Chaturvedi; Editing by Kirsten Donovan)

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