Congress Alleges Adani Favoritism in Uttarakhand Power Tender, Government Defends Process

The Congress has accused Uttarakhand Chief Minister Pushkar Singh Dhami‘s government of rewriting nearly all tender conditions to favor the Adani Group in a power procurement contract worth ₹1.66 lakh crore.

Congress leader Pawan Khera alleged at a press conference in Delhi that the Uttarakhand government altered 84 of 86 tender conditions after issuing the power tender in February 2025. The modifications, he claimed, were designed to benefit the Adani Group.

Tender Modifications Alleged

According to Khera, the changes included provisions allowing the proposed 1,320 MW coal-based power plant to be located anywhere in the country rather than in Uttarakhand. The construction timelines were extended to 42 months for Unit-1 and 48 months for Unit-2. The fixed charge ceiling in the tariff structure was raised from 70% to 75%, a change Khera said would guarantee Adani Power receives payments for 25 years regardless of whether Uttarakhand actually purchases electricity.

A Power Purchase Agreement with Adani Power was approved by cabinet on August 25, at a rate of ₹5.74 per unit. The project involves a coal block allocated in Chhattisgarh. Khera alleged that Uttarakhand would fund the electricity generation while the plant operates in Chhattisgarh, with Adani handling everything from coal mining to power production and sales.

The Congress also questioned why the government scrapped a proposed UJVN-THDC joint venture project that had been intended to ensure uninterrupted power supply in the state.

Government Defense

Responding to the allegations, Uttarakhand’s principal secretary for energy, R. Meenakshi Sundaram, defended the process as conducted according to established rules, technical requirements, competitive tendering, and with approval from the Uttarakhand Electricity Regulatory Commission.

Sundaram rejected the claim that the contract was awarded without competition, stating that five companies qualified during the Request for Quotation stage and competition has continued through the Request for Proposal process. He said final selection will depend on the total tariff quoted during competitive bidding.

Regarding the option to locate the plant outside Uttarakhand, Sundaram cited the state’s environmental sensitivity and the logistics of transporting coal over long distances. He said allowing companies to identify suitable locations across the country enables more competitive rates by considering fuel availability and transportation costs. There is no restriction on setting up the plant in Uttarakhand if a company offers competitive rates, he added.

On the increase in the fixed charge ceiling, Sundaram explained that the original Model Bidding Document set the limit at 70%, requiring a minimum 30% allocation to fuel charges. Considering actual bidder costs, fuel availability, and site-specific conditions, Uttarakhand Power Corporation Limited proposed raising the limit to 75%, and this was approved after deliberation by UERC.

Sundaram said transmission costs would be determined according to tender and tariff terms, and that the total financial impact on consumers would be assessed based on the overall electricity tariff, not on transmission costs alone.