A crucial part of the case for the Adani coal project is the “pit to plug” strategy in which companies in the Adani Group would mine coal in the Galilee Basin, transport it by rail to Abbot Point, ship it from there to India, burn it in Adani Power’s coal-fired power stations and sell the generated electricity to Indian consumers. This claim is important to Adani for three reasons
* First, it is supposed to mean the big decline in the world price of coal since the project began is not a problem. The idea is that Adani Power will take the coal regardless of price
* Second, it undercuts arguments that exports from the Galilee Basin will compete with other Australian coal mines, leading to a loss of jobs
* Finally, it is central to the argument that the Adani project is necessary to end energy poverty in India.
All of these arguments have been rehearsed at length in the Australian media. But it seems that the memo hasn’t reached Adani Power in India. A month or so ago, they span off their Mundra Power station, loaded with a lot of debt, into a subsidiary, and offered a 51 per cent interest to the Gujarat government for a nominal price. Now, they have announced a strategy to get access to allocations of domestic coal and “do away the need for importing coal”.
Meanwhile, it’s interesting to take a look at the Adani jobs portal, announced with some flourish a month or so ago. When it was set up, there were only a couple of dozen Adani jobs on offer. Now there are none at all, though there are a handful on SEEK. AFAICT, the only people employed at the Townsville Regional Headquaters are 80 or so people who have been moved there, presumably from Brisbane.
Given the lavish promises of hundreds or even thousands that have been made to the people of NQ, isn’t it time Adani put its money where its mouth is?