Congress Accuses Uttarakhand Govt of Steering ₹1.6 Lakh Cr Thermal Power Deal to Adani Group
The Congress on 17 September 2026 alleged that a thermal power project originally meant for public‑sector undertakings in Uttarakhand was re‑engineered and handed over to the Adani Group. The party demanded a probe by the Public Accounts Committee into the Life Insurance Corporation’s (LIC) ₹33,000 crore investment in Adani companies.
Key Developments
- Congress claims the BJP-ruled Uttarakhand government scrapped the joint venture of UJVN and THDC and re‑issued a tender with 84 out of 86 conditions altered.
- The new tender matches the 1,320 MW capacity of Adani’s existing Korba plant in Chhattisgarh, raising questions about the tender’s competitiveness.
- Congress alleges the deal will cost Uttarakhand’s consumers about ₹1.6 lakh crore over the next 25 years for electricity that must be transmitted from a plant located over 1,000 km away.
- Party leaders, including Jairam Ramesh and Pawan Khera, warned that the “Modani model” – a term they use for perceived crony‑capitalism favouring Adani – will be a decisive issue in the upcoming state assembly elections.
Important Facts
In July 2024, the Union Government gave in‑principle approval for a Uttarakhand thermal project to be built as a joint venture of UJVN and THDC. Six months later, on 16 January 2025, the state abruptly abandoned the project, citing timeline concerns. Shortly before this, Adani Power acquired the distressed Lanco Amarkantak Power Limited in Chhattisgarh, which included a 1,320 MW expansion at Korba.
Exam Relevance
This episode touches upon several UPSC‑relevant themes: public‑sector disinvestment and the role of LIC in financing large corporate projects; the functioning of parliamentary oversight bodies like the PAC; the political economy of “crony capitalism” and its impact on federal‑state relations; and the procedural safeguards required in public procurement (GS2: Polity, GS3: Economy).
Way Forward
For aspirants, the key take‑aways are: (i) monitor the PAC’s investigation and any parliamentary debates on the tender; (ii) assess how the alleged deviation from standard procurement norms could set a precedent for future public‑private partnerships; (iii) evaluate the fiscal burden on consumers versus the strategic need for additional power capacity; and (iv) consider the electoral implications for the BJP in Uttarakhand, where opposition narratives may influence voter perception of governance and economic policy.