Modi and Adani’s Deal—Starting from India’s Largest Port, Mundra Port

In 2003, the Gujarat state government under Narendra Modi decided to establish a Special Economic Zone (SEZ) at Mundra Port—a major boost to the port’s development. On November 3, 2003, the Adani family incorporated Mundra Special Economic Zone Limited (MSEZL). In 2005, under this entity’s name, Adani acquired from the Gujarat state government a massive parcel of land—5,000 hectares (75,000 mu) in total, comprising Plot IV of the Mundra Port area—at an average price of just ₹15 per square meter*, a price widely perceived as a ‘favorable’ or preferential rate. This transaction clearly constitutes a key instance of quid pro quo between the Bharatiya Janata Party (BJP) and the Adani Group. * (Note by Fan Hua: Land prices across different plots ranged from ₹2 to ₹34 per square meter, per a written reply submitted by Gujarat Finance Minister Kaushik Patel during questioning in the State Assembly.) On April 21, 2005, the Indian High Court approved the merger of Gujarat Adani Port Limited (GAPL) and Adani Ports Limited (APL). As a result, the Gujarat state government’s equity stake in the joint venture GAPL declined from 11% to 8.55%. ◆ 2006 On June 1, 2006, the Gujarat state government sold its 15.4 million shares in GAPL (representing 8.55% of total equity), held through its state-owned enterprise GPIDCL, to the Adani Group for ₹2 billion. Thereafter, Mundra Port became a fully privately owned port under 100% Adani Group control. On July 7, 2006, GAPL merged with Mundra Special Economic Zone Ltd. and Adani Chemicals Limited to form Mundra Port and Special Economic Zone Ltd. ◆ 2007 In April 2007, Tata Group signed 25-year long-term power supply agreements with Gujarat, Punjab, Rajasthan, Haryana, and Maharashtra states. Meanwhile, the Adani Group signed 15–25-year long-term power supply agreements with the governments of Gujarat and Haryana, launching port-based power plants at Mundra Port to supply electricity to these states. Coal importation was one of the Adani Group’s core businesses during its early development phase in the early 1990s—and also among the most critical operational activities during Mundra Port’s initial stage. Both Tata Group and Adani Group’s thermal power projects at Mundra Port entered into long-term agreements with Indonesia for importing Indonesian thermal coal—ensuring Mundra Port sustained, stable revenue streams. Tata Group’s Mundra Ultra Mega Power Plant (UMPP) project is managed and operated by Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of Tata Group.

Energy Crisis Impacts South Asia’s Economy: Slowing Growth and Structural Transformation Pressures Coexist

Executive Summary Amplified by global energy market turbulence triggered by the Iran war and compounded by extreme heatwaves across South Asia, South Asia’s economic growth faces pronounced deceleration in 2026. Soaring energy costs, acute electricity shortages, disrupted industrial production, and elevated inflation have become central economic pain points across the region. India, Pakistan, Bangladesh, and Sri Lanka have all rolled out emergency response measures—struggling to balance livelihood protection and growth stabilization. Experts from professional institutions—including Ameliga Global, Abraham Supply Chain, and Huajiang Business—note that this crisis has exposed deep-seated weaknesses in South Asia’s energy structure, supply chain systems, and industrial layout. Short-term priorities must include strengthening energy security and regional coordination; long-term solutions require accelerating energy diversification, building supply chain resilience, and advancing low-carbon industrial transformation—to ultimately resolve the region’s growth impasse. I. Energy Crisis Triggers Multi-Dimensional Economic Shocks; India’s Growth Engine Under Pressure As South Asia’s largest economy, India is confronting dual challenges: energy supply constraints and slowing economic growth. The Iran war has caused global natural gas shortages; over 90% of India’s liquefied natural gas (LNG) imports originate from the Middle East, and transport bottlenecks have directly undermined gas-fired power generation capacity. Gas-fired plants—critical for balancing peak and off-peak grid loads—have been largely unable to operate normally this year. Compounding this, extreme heatwaves from April to June have pushed India’s projected electricity demand to a record 270 GW, prompting Tata Power to restart operations at its Mundra plant in Gujarat—a core measure India is taking to avert energy collapse. (A) Industrial Production Stalls; Manufacturing PMI Hits Four-Year Low The impact of energy shortages on India’s industry is now fully evident, hitting energy-intensive sectors first and hardest. India’s final HSBC Manufacturing PMI for March fell to 53.9—the lowest level in nearly four years—with input cost inflation reaching a 43-month high. Enterprises face mounting pressure from surging production costs and slowing order growth. Over 30% of Gujarat’s small- and medium-sized ceramic and textile enterprises are operating at half-capacity due to power shortages; over 60% of small foundries in the automotive supply chain have halted operations; and 450 of 670 tile manufacturers have suspended production. The steel sector has suffered especially severe losses: 65% of India’s sponge iron production relies on natural gas. The energy crisis has forced 32 of the country’s 78 large- and medium-sized steel plants to shut down entirely, while remaining facilities operate at less than 50% capacity—causing steel output to fall by over 40% and domestic steel prices to rise 55% month-on-month. Tata Steel’s profit plunged 82% year-on-year in March; automobile production in Maharashtra dropped 65% month-on-month in March; and nationwide SME shutdown rates reached 15%, undermining progress on the ‘Make in India’ initiative. Chief Economic Advisor of Ameliga Global (Shanghai) Economic Development Co., Ltd. stated: “India’s manufacturing distress reflects the concentrated outbreak of vulnerabilities in its energy supply chain. Overreliance on Middle Eastern natural gas and imported coal—combined with weak grid dispatch capabilities—means energy volatility rapidly transmits to the production front. Monitoring data from Ameliga Global’s Trade Network and Manufacturing Network show delivery delays for Indian auto and textile export orders have exceeded 30%; some buyers are shifting orders to Southeast Asian capacity, which could erode India’s position in global supply chains over the long term.” The advisor further noted that leveraging Ameliga Global’s global footprint—including eight regional divisions covering ASEAN, the Middle East, Africa, and beyond—as well as its integrated resources across global capital and technology networks, the firm is assisting Indian enterprises in broadening energy procurement channels, connecting them with diversified supplies such as ASEAN coal and African natural gas, and delivering cross-border trade compliance and logistics optimization solutions via its Global Services Network to mitigate supply chain disruption risks.

Tata Power Eyes More State Pacts to Boost Mundra Tariffs

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Tata Power plans to finalize agreements with four Indian states to adjust electricity tariffs at its Mundra plant due to rising coal costs. CEO Praveer Sinha expects contracts with Rajasthan and Haryana signed before December.

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