Telangana Chief Minister A Revanth Reddy on Monday took a U-turn on the Rs 100 crore donation announced by Adani Group chairman Gautam Adani to a university being set up in the state. Reddy said the Telangana government will not accept the Adani Group's donation to the Young India Skill University. The development comes amid a political battle as the Center over fresh allegations against the Adani Group and the Congress-led Opposition is demanding a JPC probe (a Joint Parliamentary Committee investigation) in the matter.
'It would dent the image of the state government'
The chief minister, while addressing a press conference, said the decision was taken since Adani's announcement gave rise to "unnecessary discussions" that it may appear favouring the state government or the CM, if the donation was accepted,
He said so far the Telangana government has not accepted a single rupee into its account from any organisation, including Adani Group.
"I and my Cabinet colleagues do not want to be involved in unnecessary discussions and situations that would dent the image of the state government or my own. That is why, on behalf of the state government, our official Jayesh Ranjan wrote a letter (to Adanis)".
"Due to the (present) situation and controversies, the Telangana government is not ready to accept the Rs 100 crore donation you (Adani) generously offered," Reddy said.
He said the letter clearly requested the Adani Foundation not to transfer Rs 100 crore to the university. The state government's attempts to obtain Income Tax exemptions for the donations made to the varsity fructified recently, the CM said. Reddy said that the amount proposed by Adani was part of the company's Corporate Social Responsibility activities.
Five Adani group firms settle lower
Meanwhile, the shares of five Adani group firms ended lower on Monday, with Adani Green Energy tumbling 8 per cent after French energy giant TotalEnergies SE said it will make no new financial contribution as part of its investments in Adani group companies till the Indian firm's founder is cleared of bribery charges.
The stock of Adani Green Energy tumbled 8.05 per cent to settle at Rs 967.65. During the day, the stock tanked 11 per cent to hit a low of Rs 932. TotalEnergies is one of the biggest foreign investors in billionaire Gautam Adani's business empire and had previously taken stakes in the group's renewable energy venture Adani Green Energy Ltd (AEGL) and city gas unit Adani Total Gas Ltd (ATGL).
Adani Energy Solutions shares declined 3.78 per cent to Rs 624.85 and Adani Power went lower by 3.02 per cent to Rs 446.85 on BSE. NDTV dropped 2.07 per cent to Rs 166.60 and Adani Total Gas by 1.43 per cent to Rs 600.75 on the BSE. However, shares of Adani Ports climbed 2.55 per cent to Rs 1,166.45, ACC rallied 2.54 per cent to Rs 2,142.85, Adani Enterprises went up by 1.26 per cent to Rs 2,257.65, Adani Wilmar by 1.81 per cent to Rs 297.60 and Ambuja Cements by 0.88 per cent to Rs 505.10.
(With PTI inputs)
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