Modi govt tweaked rules to favour Adani in submarine project worth ₹45,000 crore, alleges Congress

Adani Defence JV — a defence company owned by PM Modi’s close friend, Gautam Adani with zero experience in submarine manufacturing along with Hindustan Shipyard Limited (HSL) — has been allowed to participate in a ₹45,000 crore submarine project, the Congress party has alleged.

In a sensational revelation, Congress has accused Modi government of tweaking rules in order to favour Adani. The grand old party has also blamed that the Modi government has flouted Defence Procurement Procedure - 2016 (DPP) to include Adani’s company in the project.

Addressing a press conference in Delhi, head of the Congress media cell, Randeep Surjewala said Modi government and the PMO overruled suggestions made by the empowered committee, constituted by the Indian Navy. Although the deal has not been finalised yet,  he further alleged:

• An empowered committee of the Indian Navy headed by Navy’s Controller of Warship Production and Acquisition rejected Adani’s bid because his company was not found to be eligible. However, by overruling the decision made by the empowered committee, the Modi government allowed Adani Defence JV to take part in the project.
• Adani’s company sought to manufacture submarines based on a clause wherein its experience of setting up and running a power plant is counted which is in the complete violation of the procedure.
• Empowered Committee of the Indian Navy shortlisted two entities – 1) government-owned Mazagaon Dock Shipbuilders Limited and 2) Larsen and Toubro, but PMO directed consideration of Adani JV.

Demanding answer from the Modi Government, Congress asked:

• Adherence to DPP 2016 is compulsory. Why has the government violated the rules?
• Adani Defence or HSL had not constituted any special purpose vehicle till the last date of submission of the request, which is mandatory for such bidding. Then, why has the Defence Ministry not scrutinized it thoroughly?
• Why has the government diluted the credit rating categorization? It’s Important to mention here that Adani’s company was given “BBB” for a project valued at ₹45,000 crores while A or A+ category is mandatory for a project worth ₹1000 crore or above.