Weak prices upset Adani’s applecart

Hyderabad: At a time when Adani, Lanco and other Indian power companies are facing issues with their projects in Australia, a top government official from the country has attributed it to global commodity pricing fluctuations, even while maintaining that Australia is one of the promising business destinations for Indian investors.

Australia Parliamentary secretary to the minister for trade and investment, Steven Ciobo, said, “The commodity cycles has had a bigger impact than anything else. The fact is that Australia relies on foreign investments and we always welcome foreign investments.” Gujarat-based infra player Adani had recently announced the rejig of its project due to delays.

“The Great Barrier Reef is a tourist asset as well0 a natural environment asset. We are committed that industries in our country are clean, green and sustainable. The fact is that two years ago, the commodity prices were very very different from what they are today and that is the real story. I think it is very important to differentiate between investments in the resources sector versus investments in expansion of other Indian businesses,” he explained.

Meanwhile, Mr Ciobo also met Telangana industries minister Jupally Krishna Rao and informed that Australia was keen on collaborating with the state in areas such as mining, agriculture and water management, among others. He added that the bilateral trade between two countries stood at $15 billion and one of the major agendas was to work towards a Free Trade Agreement with India to boost ties.

The Indian  conglomerate, who has interests in varied sectors, last week reportedly advised four major engineering contractors to stop work on projects around the Carmichael mine in Queensland, including a joint venture rail line and the expansion of Abbot Point port. Adani and GVK’s Hancock Coal are facing legal challenges from indigenous landholders and conservation groups.