Congress raises questions over Adani Group’s Gangavaram port acquisition

New Delhi: The Congress on Friday raised questions over the Adani Group’s acquisition of the Gangavaram port and asserted that only a joint parliamentary probe can uncover how the conglomerate could “grab so many prize assets” in many strategic sectors so quickly and at a deep discount.

Citing a media report, Congress general secretary said it documents the modus operandi behind the staggering rise of the “Modi-made Monopoly (3M)” in many strategic sectors with a case study of the acquisition of Gangavaram port. In a post on X, Ramesh said it leads to many “piquant” questions” such as how did Adani buy a debt-free Gangavaram port in Andhra Pradesh that should be valued at double of the Rs. 6,200 crore it paid, by any reasonable valuation metric.

“How was it acquired at a much lower EBIDTA (earnings before interest, taxes, depreciation, and amortisation) multiple than Adani’s own deal with the debt-laden Krishnapatnam port and how did Adani pick up six ports in just nine years without any other bidding whatsoever,” Ramesh asked.

How did the Adani Group’s EBIDTA grow 17 times in only five years from 2017-18, he further asked. Ramesh alleged that stated strategy of Adani group is “the acquisition of companies and services in the transport utility space” with a “sustained focus on acquisitions at a deep discount value”.