- Swaminathan S Anklasaria Aiyar.
In 2006, I researched and wrote a paper for the Cato Institute on Gujarat's new strategy of port-based development. This strategy was launched by Congress chief minister Chimanbhai Patel in the early 1990s and expanded by BJP successors. I visited Gautam Adani's new Mundra port and was struck by its high automation and speed. I was astounded to hear that it financially compensated any ship that was not admitted and unloaded on schedule. While working in Bombay in 1990, I had seen ships wait 20 days for port entry. So Mundra seemed to be on another planet.
The Hindenburg Research report has alleged vast price rigging and fraud by Adani companies. The charges are serious. Global investors have stampeded out of Adani shares. We need a thorough investigation and punishment of the guilty.
Let me raise a separate linked issue. Adani's critics say he shot to riches not through skills but manipulation and political favours, minting money in cosy monopolies. I disagree. Going from humble origins to global no.3 in two decades is impossible without exceptional business skills.
Critics accuse BJP of 'giving' Adani valuable assets, from ports and mines to airports and transmission lines. No. What the government initially gave Adani was the right to operate a minor port in the Kutch desert without even a rail connection. To convert this desert patch into India's largest port is close to a miracle.
Adani has also acquired jetties and ports in a dozen other locations, beating global giants like Maersk and Dubai World in competitive auctions. He's incomparably India's top port operator, handling an estimated quarter of the total Indian freight. This makes him a national champion.
So, GoI is backing him to acquire strategic jetties and ports in Sri Lanka and Israel. Critics call this a favour. Really? The Sri Lanka terminal will cost $750 million and Haifa Port $1.18 billion. No Indian rival would dare risk so much even if offered on a platter. Adani's skills have made him a strategic player, more than just a businessman.
......to be continued.
Tailpiece.
Got up at 6, the chores and was ready by a quarter to 10.
A quiet Friday.
The evening chores. Lekha helped me to wash down our Chevy.
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