Congress alleges Uttarakhand scrapped PSU power project to favour Adani

New Delhi: The Congress on Thursday alleged that the Uttarakhand government abandoned a proposed public sector thermal power project and altered tender conditions to favour Adani Power in a 25-year electricity procurement arrangement.

The party questioned why the proposed UJVN Ltd–THDC India Ltd project was shelved and a subsequent tender sought 1,320 MW of capacity, which it claimed matched an expansion at Adani’s Korba plant in Chhattisgarh.

There was no immediate response to the allegations from the Uttarakhand government, the Centre, the Adani group or the BJP.

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Congress questions shelving of PSU venture

Addressing a press conference, Congress media and publicity department head Pawan Khera said Chief Minister Pushkar Singh Dhami had informed the Union government in 2024 that the proposed thermal power project would be developed through a joint venture between UJVN and THDC, rather than a private developer.

According to Khera, the Centre gave in-principle approval in July 2024. However, the state government abandoned the project on January 16, 2025, citing concerns over implementation timelines.

He said the decision came less than a year after the joint venture was incorporated and despite its roadmap to expand Uttarakhand’s power capacity.

Tender changes under scrutiny

Congress general secretary Jairam Ramesh alleged that 84 of the new tender’s 86 conditions were changed to facilitate the purchase of electricity from Adani’s Chhattisgarh plant.

Khera linked the sequence of decisions to Adani Power’s acquisition of Lanco Amarkantak Power through insolvency proceedings in August 2024. The acquisition, he said, included an under-construction 1,320 MW expansion at Korba.

He alleged that the subsequent Uttarakhand tender was progressively tailored to suit that capacity and questioned whether the process had preserved meaningful competition.

“Why were 84 tender conditions rewritten — was the tender designed for competition, or designed for Adani?” Khera asked.

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Congress raises concerns over long-term costs

The party also questioned the decision to allow the supplying plant to be located anywhere in India, arguing that consumers in Uttarakhand would bear the cost of transmitting electricity from Chhattisgarh.

Khera sought an explanation for what he described as an increase in the fixed-charge ceiling to 75 percent. He alleged that the arrangement could cost Uttarakhand nearly Rs 1.6 lakh crore over 25 years.

The figure was presented by Congress as an estimated long-term cost, not an established loss to the state.

Ramesh accused the BJP government of sidelining public sector enterprises and consumer interests to benefit a private group. He said the party would face an electoral response over the issue in the upcoming Assembly elections.

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