News Tamil Nadu

Dravidian Model Hypocrisy: TNEB Poised To Award Smart Meter Contracts To Adani Group; Here’s How DMK Publicly Vilified Adani

December 5, 2024
The Commune

The Tamil Nadu Electricity Board (TNEB) is expected to award the first phase of its ambitious smart metering initiative to Adani Energy Solutions Limited (AESL), a subsidiary of the Adani Group. According to senior sources within the TNEB, AESL has emerged as the lowest bidder for the project.

The initiative, which is part of the Union government’s Revamped Distribution Sector Scheme (RDSS), aims to enhance the efficiency of electricity distribution through advanced metering infrastructure. AESL’s proposal highlights Tamil Nadu as a priority state, with plans to install the highest number of meters among participating states. The initial budgetary allocation for the project in Tamil Nadu is approximately ₹19,000 crore.

The tender for the first package, currently in the financial bid evaluation stage, lists AESL as the lowest bidder on the state government’s official tender portal. While this positions AESL favorably, TNEB officials noted that a final decision is pending.

The smart metering project, initiated in August 2023, was divided into four packages to cover different regions of the state. Each package encompasses the installation of approximately 80 lakh smart meters, totaling around three crore meters. Tamil Nadu, the state with the highest number of sanctioned meters under the RDSS, has experienced delays in contract finalization due to legal hurdles, although these issues have now been resolved.

If selected, AESL will act as the Advanced Metering Infrastructure Service Provider (AMISP) under the Design, Build, Finance, Own, Operate, and Transfer (DBFOOT) model. As per RDSS guidelines, the AMISP will handle the project’s infrastructure and operations for 10 years using a TOTEX (total expenditure) framework, which combines capital and operational expenses.

The AMISP’s responsibilities will include providing, maintaining, and operating the smart metering infrastructure. While an initial portion of the capital cost will be borne by the government, the remaining expenses will be paid over time on a per-meter, per-month basis during the operational period.

According to TNEB officials, AESL has quoted service charges higher than the rates it offered in other states, where charges were reportedly under ₹120 per meter per month. Negotiations are underway to bring the quoted price down. TNEB has already piloted smart metering in Chennai’s T Nagar area, installing 1.10 lakh meters as part of the Smart City project in 2018.

DMK Hypocrisy Exposed – Here’s How They Publicly Vilified Adani

In February 2023, Tamil Nadu Chief Minister M.K. Stalin called for a Joint Parliamentary Committee (JPC) probe into allegations against the Adani Group, describing the accusations as a direct reflection on the Central government. He urged Parliament to hold a debate on the issue, emphasizing the significance of accountability. Stalin criticized the expunction of Rahul Gandhi’s remarks about Adani in the Lok Sabha, calling it an affront to parliamentary democracy, and stated that such actions cannot erase the concerns from public memory. He also condemned Prime Minister Narendra Modi for failing to address questions raised by the opposition, particularly regarding the Hindenburg Research report on the Adani Group.

At a rally in Tamil Nadu in April 2024 just before the Lok Sabha polls, Congress leader Rahul Gandhi accused the Narendra Modi government of operating as the “Adani government,” claiming it favours billionaire Gautam Adani in key projects. Rahul alleged that infrastructure projects, including airports and highways, are systematically handed over to Adani, citing the example of Mumbai airport, where he claimed a CBI inquiry led to its transfer to Adani. He further stated that his Lok Sabha membership was revoked after raising the Adani issue in Parliament.

In September 2023, amidst the “Eradicate Sanatana Dharma” controversy, DMK leader Udhayanidhi Stalin accused Prime Minister Narendra Modi’s government of using it as a distraction from critical issues such as the Adani controversy, corruption, and the Manipur violence. He alleged that the BJP twisted his remarks on Sanatan Dharma to shield itself from public scrutiny over failures and accused Modi of evading accountability by “globe-trotting.”

In February 2023, DMK MP Kanimozhi questioned the government’s stance equating criticism of the Adani Group with questioning India and demanding clarification on this linkage. Participating in a Lok Sabha debate, she criticized the ruling BJP for shielding corporates, citing the government’s vehement reactions to any mention of Adani while other nations treated such reports as company-specific issues.

The Adani Group has announced an investment of over ₹42,700 crore in Tamil Nadu through various group companies, as part of its commitments made at the Tamil Nadu Global Investors Meet 2024. The largest investment, ₹24,500 crore, will be made by Adani Green Energy in three pump storage projects over the next 5-7 years. Adani Connex plans to invest ₹13,200 crore in a hyperscale data center, while Ambuja Cements will invest ₹3,500 crore in three cement grinding units. Additionally, Adani Total Gas will invest ₹1,568 crore to expand its operations over the next 8 years.

The DMK has been vocal in demanding an investigation into Adani following the allegations made by Hindenburg. However, this stance appears contradictory as the DMK-led Tamil Nadu government simultaneously awards contracts to Adani and accepts his investments in the state. While criticizing Adani is a strategy to target the central government, it raises questions about the state’s position. If Adani is as corrupt and unstable as claimed, why would a rational state government entrust him with major contracts? Or does the DMK now consider Adani and his firm above reproach?

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