Gautama AdaniImage Credit Source: PTI
Industrialist Gautam Adani’s company Adani Energy Solutions has suffered a major setback. A High Court has stayed his power company’s deal with a government firm worth $736 million, i.e. around Rs 6,185 crore. Under this agreement, the Adani Group company was to prepare electrical infrastructure and transmission lines under a public-private partnership.
This case comes from Kenya, where the High Court suspended this agreement on Friday. Adani Energy Solutions signed this agreement with Kenyan government company Kenya Electrical Transmission Company (KETRACO) earlier this month.
Regarding this agreement, Kenya’s Ministry of Electricity said on October 11 that it will help the country’s economic growth. It will also help address frequent blackouts in the country.
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What did the Kenya High Court say?
The Kenya High Court suspended the deal, saying the government cannot enter into a 30-year agreement with Adani Energy Solutions until it gives its verdict on the case brought by the ‘Kenya Law Society’. The Kenya Law Society itself has opposed this agreement.
What is the Kenya Law Society’s argument?
The Law Society of Kenya says this proxy deal is a betrayal of the Constitution. There is also a lot of secrecy in it. Not only this, he has also said in his complaint that Catraco and Adani Energy Solutions did not engage publicly with the public regarding this project. Whereas it is mandatory to do so under the Kenya Public Private Partnership Act 2021.
According to a news report by ET, before sealing this deal, Kenya’s Ministry of Energy had said that it had followed a competitive bidding process for it. While Adani Group has not yet received any statement in this regard.
Anger against Adani in Kenya
Anger is being seen among the people there over the entry of the Adani Group into Kenya. Recently, people here protested against the handing over of Kenya’s largest airport to the Adani Group for 30 years in exchange for its expansion.
