ADANIENSOL

By Jayshree P Upadhyay

MUMBAI, April 30 (Reuters) - India's markets regulator has kept in abeyance pleas by the Adani group and its offshore investors to settle a raft of regulatory charges until internal processes are reviewed, two sources with direct knowledge of the matter said.

The Securities and Exchange Board of India (SEBI), where a new chief took charge in March, is reviewing rules of settlement pleas, the regulator said last month. A lack of uniformity in the settlement process and unclear rules on the nature of penalties imposed has prompted the review, the first source said.

The review could take three months after which the Adani pleas will be taken up under new processes, said the second source, with direct knowledge of the matter.

Under SEBI's settlement process, investors and market participants pay a monetary fine or agree to regulatory directions without admission or denial of guilt.

The sources declined to be identified as the status of investigations and pleas are private.

SEBI and the Adani group did not respond to e-mails seeking comment.

SEBI began investigating the Adani group in 2023 after US-based shortseller Hindenburg alleged improper use of tax havens and stock manipulation by the group, setting off a $150 billion sell-off despite the conglomerate's denials of wrongdoing. The shares have since recovered.

Gautam Adani and top executives of Adani Green are also facing indictment by the U.S. authorities alleging that they paid bribes to secure Indian power supply contracts and misled U.S. investors during fund raises. On Monday the company informed stock exchanges in India that an independent review of the indictment did not find any non-compliance of law by Adani group officials.

In India, SEBI was investigating 24 charges against group companies and its offshore investors, it said in a filing to the Supreme Court in 2023.

Thirty Adani group entities have applied to settle some of these regulatory charges, said the second source.

The Adani pleas are among over three hundred pending applications for settlement but are the most prominent being reviewed, the source added.

SEBI has charged Adani Enterprises ADEL.NS , Adani PortsAPSE.NS , Adani Energy ADAI.NS and Adani Power ADAN.NS of wrongfully categorising certain shareholders as public, according to financial statements filed by these four companies.

Twenty-six other Adani group and related entities have been charged with categorizing shareholdings by three Mauritius based offshore funds as public shareholdings when these funds were linked to Vinod Adani, brother of Adani group Chairman Gautam Adani, the source said.

Under Indian law, at least one-fourth of a listed company's shares should be held by public shareholders.

These Adani entities had sought to pay a monetary fine for settling the market infraction, without proposing to recategorise the shareholding, the second source said.

“For the settlement to proceed, Adani group companies will have to re-categorise the shares held by these funds as non-public shareholding,” said the other source.

Separately a dozen offshore funds invested in Adani group companies were charged with violation of disclosure rules and in breach of regulatory prescribed investment limits, Reuters had reported last year.

(Reporting by Jayshree P. Upadhyay; Editing by Raju Gopalakrishnan)

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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)

(([email protected];))

Repeats story from Friday morning in Asia

By Sarita Chaganti Singh, Shivangi Acharya

NEW DELHI, March 21 (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%.

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)

(([email protected];))

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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March 10 (Reuters) - Fitch Ratings has assigned a negative outlook to Indian energy infrastructure company Adani Energy Solutions Limited ADAI.NS, citing concerns over corporate governance and potential risks from ongoing U.S. investigations.

The action comes months after U.S. authorities accused billionaire Gautam Adani and top Adani Group executives of paying $265 million in bribes for Indian power contracts and misleading U.S. investors during fundraising, charges the group has called "baseless".

Adverse findings from the U.S. investigations could weaken governance standards and trigger a downgrade of the company's rating in the near to medium term, Fitch said on Sunday.

It could cut the rating if the investigations lead to regulatory penalties, restrictions, or a loss of market confidence, the rating agency said.

Fitch removed the company from its 'rating watch negative' list, saying risks related to its liquidity and funding had moderated and affirmed its rating for Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BBB-'.

While Adani Energy operates independently, governance concerns at the Adani Group level could still impact its capital market access and liquidity, Fitch said.

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Mrigank Dhaniwala)

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March 2 (Reuters) - India's infrastructure-focussed Adani Group has revived plans for major investments in the U.S., the Financial Times reported on Sunday.

The business group has reactivated potential plans to fund projects in sectors such as nuclear power and utilities as well as an east coast port, the report said, citing four people close to group founder and chair Gautam Adani.

(Reporting by Mrinmay Dey in Bengaluru; Editing by William Mallard)

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BENGALURU, Jan 23 (Reuters) - Diary of India economic, corporate events on Jan. 23

ECONOMIC, CORPORATE .BSE500 EVENTS:

NTS - 'No time scheduled', AMC - 'After market close'

(Compiled by Bengaluru Newsroom)

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Jan 21 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• WINS 250 BILLION RUPEES BHADLA-FATEHPUR HVDC PROJECT

Source text: ID:nBSE7FhMHS

Further company coverage: ADAI.NS

(([email protected];;))

Jan 20 (Reuters) - REC Limited RECM.NS:

• RAJASTHAN PART I POWER TRANSMISSION TRANSFERRED TO ADANI ENERGY SOLUTIONS

• CONSIDERATION INCLUDES 150 MILLION RUPEES PROFESSIONAL FEE, REIMBURSEMENT OF EXPENSES

Source text: ID:nBSE97Yqh6

Further company coverage: RECM.NS

(([email protected];;))

Jan 17 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• EXECUTION OF SPA FOR ACQUIRING 100% EQUITY SHARES OF SUPERHEIGHTS INFRASPACE

• UNIT TO ACQUIRE 100% EQUITY SHARES OF SUPERHEIGHTS INFRASPACE

• ACQUISITION COST SET AT 4.75 BILLION RUPEES

Source text: ID:nBSE6bQDcx

Further company coverage: ADAI.NS

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Dec 17 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• ADANI ENERGY SOLUTIONS LTD - ACQUISITION BY INCORPORATION OF WOS ADANI ENERGY SOLUTIONS STEPELEVEN

Source text: ID:nBSE98ZXph

Further company coverage: ADAI.NS

(([email protected];))

Dec 9 (Reuters) - Indian conglomerate Adani Group will invest over 7.5 trillion rupees ($88.53 billion) in various sectors like renewable energy and cement in the northern state of Rajasthan, Karan Adani, managing director of Adani Ports APSE.NSm, said on Monday at an investment summit.

($1 = 84.7200 Indian rupees)

(Reporting by Sethuraman NR; Editing by Sonia Cheema)

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

Dec 5 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• ADANI ENERGY SOLUTIONS LTD - RECEIVES LOI FOR 20 GW TRANSMISSION SYSTEM IN RAJASTHAN

Source text: ID:nBSEc2HQs4

Further company coverage: ADAI.NS

(([email protected];;))

Dec 3 (Reuters) - Several entities linked to the Adani Group have approached the India markets regulator to seek a settlement in a case that accuses them of violating public shareholding regulations through improper practices at four of the conglomerate's listed companies, the Economic Times reported on Tuesday.

Adani Group did not immediately respond to Reuters inquiry, seeking comments.

(Reporting by Anuran Sadhu in Bengaluru; Editing by Savio D'Souza)

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Dec 2 (Reuters) - India's Adani Green Energy ADNA.NS rose about 8% on Monday and recouped all stock losses related to U.S. indictment of group's billionaire founder Gautam Adani over an alleged $265 million bribery scheme.

(Reporting by Sethuraman NR; Editing by Tom Hogue)

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By Krishna N. Das

DHAKA, Dec 1 (Reuters) - Bangladesh wants to sharply lower prices under a power purchase deal with India's embattled Adani Group unless it is cancelled by a court, which has called for an investigation into the 25-year deal, its de facto energy minister told Reuters on Sunday.

Adani Group founder Gautam Adani is already facing allegations by U.S. authorities that he was part of a $265 million bribery scheme in India, charges he has denied, even as one Indian state reviews a power deal with the group and France's TotalEnergies TTEF.PA pauses its investments.

In Bangladesh, based on an appeal by a lawyer demanding the power deal's potential cancellation, the High Court last week ordered a committee of experts to examine the contract under which Adani supplies power from a $2 billion coal-fired plant in eastern India. The investigation is expected to be concluded by February, when the court is due to make its order.

The deal was signed in 2017 by Adani and a government entity under Prime Minister Sheikh Hasina, who was ousted this year amid a popular uprising and accusations of widespread corruption. Supply from the 1,600 megawatt plant, which uses expensive imported coal, started last year and meets about a tenth of Bangladesh's consumption.

"Renegotiate in case of anomalies in the contract. Cancel only in case of irregularities such as corruption and bribery," Muhammad Fouzul Kabir Khan, Bangladesh's power and energy adviser, said in an interview in his office.

"Both based on the findings of the court-ordered investigations."

He said some issues, such as Bangladesh not benefiting from some Indian tax exemptions to the power plant, have already been flagged to Adani and could partly form the basis of a deal renegotiation.

Adani did not immediately respond to a request for comment on the weekend. Adani Power Ltd ADAN.NS said in its latest annual report that the plant in India's Jharkhand state would provide Bangladesh uninterrupted, reliable and affordable electricity and "significantly reduce the average cost" for the end consumer.

Khan said the U.S. corruption allegations against Adani themselves may not have any bearing on the Bangladeshi deal.

A separate committee formed by Bangladesh's interim government is already probing the Adani deal and six other power contracts with the aim to ensure the investigations "will be acceptable in international negotiations and arbitration", said a government statement.

At 14.02 taka a unit, Adani charged the highest rate for Indian-generated power to Bangladesh in the 2022/23 fiscal year, compared with an average price of 8.77 taka ($0.0737), according to the state-run Bangladesh Power Development Board.

Adani's rate fell to 12 taka a unit in 2023/24, still 27% higher than the rate of India's other private producers and as much as 63% more than Indian state-owned plants, Reuters has reported.

The retail price in Bangladesh is 8.95 taka per unit, which results in an annual power subsidy bill of 320 billion taka for the exchequer, Khan said.

"Because the prices are high, the government has to subsidise," Khan said. "We would like power prices, not only from Adani, to come down below the average retail prices."

Bangladesh, however, will keep paying for the power it is importing from Adani, he said. The company had recently halved its supply because of a delay in payment.

Khan said Bangladesh has enough domestic capacity to meet its needs, though some plants are currently idle or generating below capacity because of a shortage of gas or other reasons.

"When Adani cut their supply to half, nothing happened," he said. "We will not allow any power producer to blackmail us."

($1 = 119.0000 taka)

(Reporting by Krishna N. Das in Dhaka; Additional reporting by Maksud Un Nabi; editing by David Evans)

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NEW DELHI, Nov 29 (Reuters) - The lower house of India's parliament was suspended temporarily on Friday for a fourth day in a row this week following disruptions as opposition lawmakers sought a discussion on the allegations against Adani Group.

U.S. authorities last week accused Group Chairman Gautam Adani and seven others from the company of being part of a $265 million scheme to bribe Indian officials, and of misleading U.S. investors while raising funds there.

The ports-to-power conglomerate has termed the allegations "baseless" and said it would seek "all possible legal recourse".

(Reporting by Sakshi Dayal; Editing by Kim Coghill)

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Nov 28 (Reuters) - The former chief minister of India's Andhra Pradesh state refuted on Thursday bribery allegations and any involvement by the Adani Group in the state government's purchase of solar power while he was in power.

In his first comments after facing allegations of corruption, Jagan Mohan Reddy dismissed any state involvement with Adani in the deal. He said the agreement was between the government and the Solar Energy Corporation of India, which awards power-supply contracts to companies, and no third party.

"Adani meeting me is nothing out of ordinary. He would have met me several times during my tenure. He has got ongoing projects in Andhra Pradesh," Reddy said in a press briefing.

Reuters earlier reported that the southern state is likely to suspend a power-purchase deal linked to the Adani Group due to Gautam Adani's indictment in the U.S., and will ask the SECI and the federal government to investigate the charges.

U.S. authorities have accused Gautam Adani, his nephew and executive director Sagar Adani and managing director of Adani Green, Vneet S. Jaain, of being part of a scheme to pay bribes of $265 million to secure Indian power-supply contracts, and misleading U.S. investors during fund raises there.

Most of the alleged bribes - $228 million - were paid to a government official to entice Andhra Pradesh's state electricity-distribution companies to agree to purchase power, the U.S. indictment said.

Adani Group has denied all allegations made by the U.S. Department of Justice and the Securities and Exchange Commission as "baseless" and said it was fully compliant with all laws.

(Reporting by Rishika Sadam and Chandni Shah in Bengaluru; Editing by Rod Nickel)

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Adds FBI comment paragraph 7, Adani Green statement paragraph 8

NEW DELHI, Nov 27 (Reuters) - Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for conspiring with executives of a formerly New York listed company to devise a $265 million scheme to bribe Indian officials to boost their solar energy business.

Adani and his executives have also been accused of making false and misleading statements to investors and lenders in the United States regarding the company's anti-bribery commitments and practices while raising money from them.

Adani Group denied the allegations as "baseless", while Indian government officials haven't commented so far.

Here is an overview of the investigation and allegations revealed in the U.S. indictment:

WHAT ARE THE MAIN ALLEGATIONS?

U.S. prosecutors charged Gautam Adani, his nephew Sagar Adani who is director at Adani Green, and six others in running an alleged bribery scheme related to renewable energy projects in India that benefitted the tycoon's company and India's Azure Power, which was listed on the NYSE until late 2023.

In 2020, the indictment shows, executives of Adani Green and Azure "knowingly and wilfully conspired" and agreed to "corruptly" offer, authorise and pay bribes to government officials in India to "obtain or retain business advantages".

"Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts," said FBI Assistant Director in Charge James E. Dennehy.

Adani Green on Nov. 27 said Gautam Adani has been charged on three counts in the criminal indictment for alleged securities fraud conspiracy, wire fraud conspiracy and securities fraud, but not the U.S. Foreign Corrupt Practices Act.

Between 2021 and 2024, Adani raised more than $3 billion in loans and bonds, including from investors in the United States.

"Gautam and Sagar Adani were engaged in the bribery scheme during a September 2021 note offering by Adani Green that raised $750 million, including approximately $175 million from U.S. investors," the U.S. Securities and Exchange Commission said.

The Adanis earlier this year made misleading statements to the public, the Indian stock exchange and investors despite being made aware of the U.S. investigation in 2023, the prosecutors alleged.

HOW WERE BRIBES TRACKED, PAID?

Sagar Adani, executive director of Adani Green and nephew of Gautam Adani, used his mobile phone to track details of the bribes offered to Indian officials, U.S. authorities alleged.

In a meeting between some Adani and Azure executives in 2022, Gautam Adani detailed aspects of the bribery scheme including steps he personally took to offer money to government officials, the U.S. authorities said.

Executives from Azure also prepared an analysis using Excel and PowerPoint to summarise the different ways in which it could repay Adani Green for the bribes it had paid to benefit both companies. For one of the projects of 2.3 gigawatts of power, the bribe was calculated at around $30,000 per megawatt.

One way discussed was to describe the payment internally at Azure as a "development fee", but it instead used another option of getting Azure to transfer one of its projects to Adani in lieu of part of the payment, U.S. authorities alleged.

Azure in a statement said former officers of the company referenced in the U.S. indictment were no longer associated with the company, and the company continued to cooperate with U.S. authorities.

WHAT WERE THE POWER PROJECTS IN QUESTION?

U.S. authorities called the dealings in their indictment "The Corrupt Solar Project".

Between 2019 and 2020, Adani Green and Azure were awarded renewable energy tenders by Solar Energy Corporation of India (SECI), a federal government-owned entity.

U.S. authorities alleged Adani and others devised a scheme to bribe Indian state officials to enter into agreements with SECI, "which would benefit" Adani subsidiaries and Azure.

Adani facilities in Rajasthan and Gujarat states in India supplied the power contracted in the Adani deals. One of those marquee projects is the Adani energy park in Khavda , which the company says is the world's biggest renewable energy project.

HOW DID U.S. FEDERAL AGENTS INVESTIGATE, SEIZE EVIDENCE?

In March 2023, FBI special agents approached Sagar Adani with details of the grand jury's ongoing investigation into the group and other entities. They took custody of electronic devices in Sagar's possession and served him with a search warrant and grand jury subpoena.

The search warrant identified offences, individuals and entities under investigation by the U.S. for violations of the Foreign Corrupt Practices Act, securities fraud, and wire fraud.

WHAT'S NEXT FOR THE ADANI GROUP?

Adani Group in a statement said it would seek "all possible legal recourse". The grand jury in its order said if any of the executives were found guilty of the charges they would have to forfeit any property or proceeds derived directly or indirectly as a result of the offences.

Federal prosecutors have also issued arrest warrants for Gautam and Sagar Adani. The U.S. Securities and Exchange Commission has issued summons to Gautam Adani and his nephew Sagar to answer the allegations.

Gautam and Sagar have not been arrested and their whereabouts are unknown, though they are believed to be in India.

(Reporting by Aditi Shah and Aditya Kalra; Editing by Mark Potter)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

Adds share price, Adani investor memo; paragraphs 4, 13-20

By Scott Murdoch and Tom Westbrook

Nov 26 (Reuters) - Ratings agency Fitch has put some Adani Group bonds on watch for a possible downgrade after U.S. authorities indicted some key executives of the Indian conglomerate on bribery charges.

Adani Energy Solutions Ltd ADAI.NS, Adani Electricity Mumbai and some of Adani Ports and Special Economic Zone APSE.NS rupee and dollar bonds are now on "watch negative", Fitch said in a statement.

Ratings on four Adani subsidiary senior unsecured dollar bonds were downgraded from stable to negative, the agency said.

Adani stocks opened further down on Tuesday. Of 10 listed companies that have lost about $33 billion in market value since the indictment, Adani Green ADNA.NS has been the hardest hit, losing about $9.7 billion. The stock was down 7.5% on Tuesday.

A ratings watch negative signals a heightened probability of a rating downgrade that could affect the pricing of hundreds of millions of dollars worth of Adani's debt.

Fitch will monitor the U.S. investigation for any impact on Adani's financial position, it added in Tuesday's statement.

Specifically, it would watch for "any material deterioration in near- to medium-term funding access, including their ability to roll over existing credit lines or access new facilities, as well as potentially higher credit spreads," it said.

Rating agency S&P Global put Adani PortsAPSE.NS, Adani Green Energy ADNA.NS and Adani Electricity on a downgrade warning due to the U.S. indictments.

On Monday French oil major TotalEnergies TTEF.PA said it would halt financial contributions to its Adani Group investments following last week's indictment.

U.S. prosecutors have charged billionaire Gautam Adani, the group's founder, his nephew Sagar Adani and six others for their alleged roles in a $265-million scheme to bribe Indian officials to secure power supply deals.

The Adani Group has dismissed as "baseless and denied" the accusations, along with those made by the U.S. Securities and Exchange Commission in a parallel civil case, adding it would "seek all possible legal recourse".

U.S. authorities said the bribes were paid to win contracts expected to yield $2 billion of profit over 20 years and develop India's largest solar power plant.

In a memo to clients, major Adani backer GQG Partners GQG.AX sought to ease concerns about its exposure to Adani.

Except for Adani Green Energy Limited (AGEL), the Adani Group does not need to raise more capital at this point, GQG said in the memo, seen by Reuters.

The Australia-listed investment firm said it did not see the indictment having a material impact on Adani's businesses.

But it warned that if Adani did need additional financing, the matter would restrict its ability to access foreign capital.

Any negative actions by the Indian government could have meaningful implication for Adani, it added, though saying the Indian government would maintain support for Gautam Adani.

GQG picked shares worth $1.87 billion in four Adani group companies last year, shortly after a short-seller's critical report sparked a stock rout.

GQG has a stake of nearly 20% across Adani Group companies, accounting for about 6.1% of its total assets of $158.6 billion. As of Thursday GQG’s total exposure fell to 5.2% of total assets.

GQG did not reply to a request for comment.

Adani dollar bonds steadied on Tuesday and prices rose slightly after three days of heavy falls.

Prices on some of the more liquid Adani Ports and Special Economic Zone APSE.NS debt maturing between 2027 USY00130VS35=TE and 2041 US00652MAJ18=TE were up between half a cent and 1.5 cents on the dollar. They have fallen about 8 cents to 12 cents since news of the indictment.

Leading ESG ratings provider Morningstar Sustainalytics said it would review Adani Green Energy’s ESG risks.

"No business, green or brown, can represent a good investment opportunity without robust governance policies and practices," Hortense Bioy, its head of sustainable investing research, said in an email.

This week, Japan's SBI Asset Management published the extent of exposure to Adani Group entities of four of the funds it manages.

Its SBI/UTI India Infrastructure Equity Fund had the highest exposure at 2.55%, while that of the other three ranged from 2.08% to 0.21%, SBI said in a statement.

(Reporting by Scott Murdoch, Praveen Menon in Sydney and Tom Westbrook in Singapore; Additional reporting by Chris Thomas and Angela Christy in Bengaluru, Isla Binnie and Anton Bridge; Editing by Clarence Fernandez)

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Updates with moves by Bangladesh and US government bodies, CFO statement

BENGALURU, Nov 25 (Reuters) - Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for his alleged role in a $265 million scheme to bribe Indian officials, sending shockwaves across his eponymous ports-to-soybeans business conglomerate.

Here is what you need to know about the U.S. indictment.

THE MAJOR U.S. INDICTMENT

Gautam Adani, one of world's richest people, faces his biggest challenge after being charged with seven others for alleged bribery related to power supply deals from energy projects in India, with U.S. authorities calling it "The Corrupt Solar Project".

Adani Group, which runs several key infrastructure projects across the globe, says the allegations are baseless and has vowed to seek "all possible legal recourse".

The group's CFO has said the indictment is linked to one Adani Green Energy contract that makes up some 10% of the unit's business.

There is also a growing spotlight on Sagar Adani, a millennial scion of the company who kept track of hundreds of millions of dollars of alleged bribes to Indian officials, in notes the prosecutors described as "bribe notes".

The alleged bribes caught the attention of U.S. authorities when Adani's companies were raising funds from U.S.-based investors in transactions starting in 2021.

DISCLOSURE ISSUES, STOCK ROUT AND FALLOUT

The scandal has also raised concerns about market and public disclosure lapses by Adani Group, with prosecutors alleging the company issued false statements earlier this year related to its knowledge of the U.S. investigation.

The U.S. indictment has kept Adani Group's debt and equity under pressure. Its dollar bond prices have fallen to almost a one-year low.

The indictment appears to now have ramifications across the globe, including news that some bankers are considering pausing fresh lending to the group.

Kenya has ordered the cancellation of Adani infrastructure deals worth over $2.5 billion and a U.S. development agency is 'assessing ramifications' on a Sri Lanka Adani port project it had agreed to finance. In Bangladesh, a government panel has sought legal help for its investigation of power deals including one with Adani.

Back in India, opposition parties have demanded a probe into allegations of wrongdoing and said they would raise the issue in parliament.

WHAT NEXT FOR ADANI, LEGAL OPTIONS

A key question is what is next for Gautam Adani? He is charged with foreign bribery, securities fraud, securities fraud conspiracy and wire fraud conspiracy.

Adani has not been arrested and his whereabouts are unknown, though he is believed to be in India.

A trial could still be a long way off, even if Adani is extradited or surrenders in the U.S.

If convicted, Adani could face decades in prison as well as monetary penalties, though any sentence would ultimately be up to the judge overseeing the case.

For now, Adani has to answer U.S. SEC allegations within 21 days, a court directive states.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Aditya Kalra, Sonali Paul and Toby Chopra)

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Nov 23 (Reuters) - Adani Energy Solutions ADAI.NS said on Saturday that Kenya's cancellation of a $736 million transmission line project did not require it to make any regulatory disclosure under Indian stock exchange rules as it was within its ordinary course of business.

It said it was responding to a request for clarification from the Bombay Stock Exchange and the National Stock Exchange after Reuters reported that Kenya's president had ordered the cancellation of the 30-year public-private partnership deal.

"Further, the Company hereby submits that there is no material impact of the Media Report on the operations of the Company," Adani Energy Solutions said in a statement.

President William Ruto also said on Thursday he had ordered the cancellation of a procurement process that had been expected to award control of Kenya's main airport to India's Adani Group.

U.S. authorities on Wednesday indicted Adani Group founder Gautam Adani and seven others, alleging they paid $265 million in bribes to Indian officials. The group denied the allegations.

Under the Kenyan international airport plan, worth nearly $2 billion, the Adani Group was to add a second runway and upgrade the passenger terminal in exchange for a 30-year lease.

Adani Energy Solutions said in its statement on Saturday that it was not involved in the deal to manage and upgrade Kenya's Jomo Kenyatta airport.

"The Company nor any of its subsidiaries have entered into any contract in connection with any airport in Kenya," it said.

(Reporting by Surbhi Misra in Bengaluru; Editing by Alexander Smith)

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Updates with share prices in paragraphs 8-9

By Scott Murdoch and Tom Westbrook

Nov 22 (Reuters) - Gautam Adani's conglomerate could find it harder to get funding following a U.S. arrest warrant for its billionaire founder, with some banks considering halting fresh credit to the Indian group due to an alleged $265 million bribery scheme.

Some global banks are considering temporarily halting fresh credit to the Adani Group after the U.S. indictment but maintaining existing loans, sources told Reuters.

Ratings agency S&P warned in a statement that the group will need regular access to equity and debt markets given its large growth plans, but it might find fewer takers.

"We believe domestic, as well as some international banks and bond market investors, look at Adani entities as a group, and could set group limits on their exposure," it said.

However, S&P added that the rated entities have "no immediate and lumpy" debt maturities.

Senior executives at two of Adani's global lenders said that they have had multiple calls within their respective banks to discuss exposure to the group and what the impact of the indictment would be on its financial position.

Research firm CreditSights highlighted refinancing for the conglomerate's green energy business, which is at the centre of the allegations, as its biggest near-term concern.

Bonds issued by the Adani Group dropped sharply for a second day on Friday and although the shares of some Adani firms clawed back some of Thursday's losses, the overall market value of all 10 stocks has dropped by $27.9 billion over two sessions.

Adani Green Energy ADNA.NS, which is at the centre of the U.S. allegations, has lost nearly $7 billion of its value.

U.S. authorities have charged Adani and seven other people with agreeing to pay bribes to Indian government officials to obtain contracts that could yield $2 billion of profit over 20 years as well as to develop India's largest solar power project.

Adani Group has said the accusations as well as those levelled by the U.S. Securities and Exchange Commission in a parallel civil case are "baseless and denied" and that it will seek "all possible legal recourse".

Some analysts said the fallout was unlikely to be limited to the Adani group of companies.

"India's renewable energy sector, a critical pillar for global climate goals, may face reduced international investment as a result of this controversy," said Nimish Maheshwari, an independent analyst who publishes on Smartkarma.

"Investors may demand greater transparency and due diligence, slowing down the pace of project financing."

The Securities and Exchange Board of India, the country's market regulator, is making preliminary checks to see if disclosures made by Adani entities were inadequate and if they breached local market regulations, a SEBI official told Reuters.

SEBI did not respond to a request for comment.

The regulator has completed a separate investigation into the group, but not yet issued orders, after Hindenburg Research in January 2023 alleged improper use of tax havens and stock manipulation, which the group has denied.

Falls in Adani dollar bond prices on Friday included a 2.5c drop on the dollar for 2029 Adani Ports and Special Economic Zone US00652MAE21=TE bonds. At 87.8c, they are down more than 5c over the two sessions.

Longer-dated maturities USY00130YV37=TE, US00652MAJ18=TE have fallen around 5c in two days and trade just below 80c.

Adani Transmission and Adani Electricity Mumbai bond prices had similar declines.

Investors are also watching to see if more Adani deals could be scuttled after Kenya cancelled a procurement process worth nearly $2 billion that had been widely expected to award control of the country's main airport to the group.

It also nixed a 30-year, $736-million public-private partnership deal that an Adani Group firm signed with the energy ministry last month to construct power transmission lines.

Adani Green also cancelled a scheduled $600 million U.S. bond sale.

U.S. prosecutors say Adani, his nephew Sagar Adani and others bribed Indian officials to gain business advantages in renewable energy projects in India that benefited Adani Green and a company called Azure Power, which was listed on the New York Stock Exchange until late 2023.

They are also accused of making misleading statements to the public, including U.S. investors, despite being made aware of the U.S. investigation in 2023.

Adani has not appeared in public or commented on social media since the indictment and his whereabouts remain unclear.

Indian authorities have not responded to opposition calls for a probe into the indictment, which came not long after Adani raised $1.5 billion through two share sales by flagship firm Adani Enterprises ADEL.NS and power distribution arm Adani Energy Solutions ADAI.NS.

(Reporting by Scott Murdoch and Tom Westbrook; Additional reporting by Chris Thomas, Ira Dugal, Aditya Kalra and Krishna Das; Editing by Edwina Gibbs and Alexander Smith)

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Nov 21 (Reuters) - Ambuja Cements Ltd ABUJ.NS:

• ADANI GROUP REACTS TO U.S. INDICTMENT, SAYS FULLY COMPLIANT WITH ALL LAWS - CNBC TV18

• ADANI GROUP RELEASES STATEMENT ON BRIBERY CHARGES; ALEGATIONS ARE BASELESS - CNBC TV18

• ADANI GROUP SAYS ALL POSSIBLE LEGAL RECOURSE WILL BE SOUGHT - CNBC TV18

Source text: [ID:]

Further company coverage: ABUJ.NS

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Nov 19 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• POWER FINANCE - TRANSFER OF PUNE- III TRANSMISSION TO ADANI ENERGY SOLUTIONS

• POWER FINANCE - DEAL FOR 187.9 MILLION RUPEES

Source text: ID:nNSE5hgj7r

Further company coverage: ADAI.NS

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Nov 8 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• UNIT INCORPORATED ANOTHER UNIT IN KENYA

Source text: ID:nBSEwTTbs

Further company coverage: ADAI.NS

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NAIROBI, Oct 25 (Reuters) - Kenya's high court on Friday suspended a $736 million deal between a state utility and India's Adani Energy Solutions to build and operate power infrastructure including transmission lines.

The public-private partnership agreement between state-owned Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions ADAI.NS was signed earlier this month.

On Oct. 11 the energy ministry said it would help address persistent power blackouts and support economic growth.

The high court said the government could not move ahead with the 30-year agreement with Adani Energy Solutions until the court makes a determination on a case brought by Law Society of Kenya challenging the deal.

The law society has argued that the power deal is "a constitutional sham" and "tainted with secrecy".

The law society also said KETRACO and Adani Energy Solutions did not carry out meaningful public participation around the project, a requirement under Kenya's Public Private Partnerships Act of 2021 which allows private sector development of public projects.

The energy ministry said previously that it had run a competitive bidding process.

A spokesperson for Adani Group did not immediately respond to a request for comment.

The Adani Group, founded by Indian billionaire Gautam Adani, sparked anger in Kenya recently for another proposed public-private partnership project to lease the country's main airport for 30 years in exchange for expanding it.

The Law Society of Kenya, along with the Kenya Human Rights Commission, has also challenged the proposed airport deal in court, saying it is unaffordable, threatens job losses and does not offer value for money.

($1 = 128.5000 Kenyan shillings)

(Reporting by Humphrey Malalo;
Writing by Sonia Rao;
Editing by Elias Biryabarema, Alexander Winning and Franklin Paul)

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Oct 23 (Reuters) - Jyoti Structures Ltd JYTS.NS:

• RECEIVED LETTER OF ACCEPTANCE FROM ADANI ENERGY SOLUTIONS

• RECEIVED LETTER OF ACCEPTANCE WORTH 4.5 BILLION RUPEES

Source text for Eikon: ID:nBSE7GwjK5

Further company coverage: JYTS.NS

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Oct 22 (Reuters) - Adani Energy Solutions Ltd ADAI.NS:

• Q2 CONSOL NET PROFIT 6.75 BILLION RUPEES

• Q2 CONSOL TOTAL INCOME 63.6 BILLION RUPEES

Source text for Eikon: ID:nBSE6ZqVpF

Further company coverage: ADAI.NS

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