WEF 2024: Adani group to invest ₹12,400 cr in Telangana

The Adani group, during the ongoing World Economic Forum (WEF) 2024 at Davos-Klosters, Switzerland, today, announced the investment of ₹12,400 crore in the state of Telangana.

The Gautam Adani-led group signed four memorandums of understanding (MoUs) with the Telangana government at the World Economic Forum 2024 today.

Under the pact, the conglomerate will invest over ₹12,400 crore in the state to carry out projects in areas of data storage, pump storage, cement plant, and defence & aerospace.

The Adani group, in a statement, says these MoUs will help build the foundations for economic growth of Telangana, which is “green, sustainable, inclusive, and transformative”.

Adani group’s flagship company Adani Enterprises Ltd will pump in ₹5,000 crore in a 100 MW data centre. These data centres will be powered by renewable energy. The project will have a timeline of 5-7 years.

“AEL will work closely with local MSMEs and startups to develop a globally competent supplier base for the project. It would provide employment, both direct and indirect, to 600 people,” the company says.

Adani group green energy arm Adani Green Energy Limited (AGEL) will invest over ₹5,000 crore to set up two pump storage projects (PSPs) –850 MW at Koyabestagudem and 500 MW at Nacharam – in the state.

Additionally, Ambuja Cements will invest ₹1,400 crore to set up a 6 MTPA cement plant in the state in the next five years. “The unit would be set up across 70 acres and would significantly enhance Ambuja’s capability. It will provide employment for over 4,000 people, both directly and indirectly,” says the company.

Adani Defence Systems and Technologies Ltd will invest over ₹1,000 crore to set up an “ecosystem for the research, development, design, manufacturing and integration of counter-drone and missile systems” at the Adani Aerospace Park in Hyderabad.

The ecosystem developed through these projects in the next decade would enhance the defence capability of India and provide employment to over 1,000 people, the company adds.

These MOUs were signed in the presence of the newly elected chief minister of Telangana, Revanth Reddy, and Adani Group chairman Gautam Adani.

One of India’s biggest conglomerates, during the Vibrant Gujarat Summit 2024 on January 10, 2024, announced investment worth over ₹2 lakh crore in the state. This is projected to provide one lakh direct and indirect jobs.

The group will construct a “green energy park” in the Kutch district of Khavda, which it claims will be the world’s largest. The group also plans to expand the green supply chain to create “integrated renewable energy ecosystems”.

In his blog post for the 54th annual meeting of the World Economic Forum (WEF) 2024 on January 17, 2023, Adani group chairman Gautam Adani said that for a country like India, the solution is not to replace one “fossil fuel” with another but to leapfrog to “renewables and green hydrogen”.

He said the decrease in solar costs can be replicated with green hydrogen. This shift, he said, will help India achieve energy security. "It will also contribute to food security by eliminating the uncertainties of imported ammonia prices, a crucial component in fertilisers."

Adani Enterprises stock closed 2.83% down today at ₹2,970.75 on the BSE.