Maharashtra forest department seeks Adani’s response on Tarali project cost, Adani denies lowering project cost

The Maharashtra Forest Department has requested Adani Green Energy Ltd to provide an explanation and supporting documents regarding the significant reduction in the declared cost of their 1,500 MW Tarali pumped storage project from ₹5,675 crore to ₹56.75 crore, according to officials familiar with the situation. The Indian Express first reported that Adani Green Energy had sought to drastically decrease the project's cost.

The forest department has not adopted the revised estimate and is awaiting Adani Green Energy's response, stated Principal Chief Conservator of Forests (Wildlife) M Srinivas Reddy. "The company has submitted an affidavit to us regarding the reduction in the project cost. However, we have not accepted the revised estimate. We have also asked the company to explain the reduction and submit supporting documents. We are awaiting its response," Reddy said.

Adani Green Energy Ltd responded to the allegations, asserting that the initial online proposal was submitted for site investigation purposes, while the State Board for Wildlife (SBWL) evaluated the project's total cost at ₹5,675 crore. The company argued that the online proposal's cost represented solely site investigations and survey costs, which they noted is approximately 1% of project costs.

Therefore, they provided clarification of the project's ₹56.75 crore, which is for the online proposal's site investigations and survey costs, related to the online proposal.

Furthermore, Adani Green Energy Ltd refuted the claim that the downward revision was intended to lower conservation costs. They emphasized that the Tarali PSP is situated entirely on private, non-forest land, approximately 3.2 km away from the Koyna wildlife sanctuary. The project does not impact or encroach upon the tiger corridor or any notified Eco-Sensitive Zone (ESZ).