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The Centre has ordered an investigation into Adani Green Energy’s revised cost estimate for its 1,500 MW Tarali pumped storage project in Maharashtra’s Satara district. The company sought to reduce the declared project cost from Rs 5,675 crore to Rs 56.75 crore.
The proposed revision has drawn attention because the wildlife conservation deposit linked to the project also fell sharply. According to an investigation published by The Indian Express on November 13, the required deposit was reduced from approximately Rs 227 crore to around Rs 2.27 crore.
The Union Environment Ministry directed the Maharashtra forest department to investigate the matter on priority. Adani Green Satara project
Why the Project Cost Revision Matters
The Tarali pumped storage project is located near the Koyna Wildlife Sanctuary, which forms part of the Sahyadri Tiger Reserve.
The State Board for Wildlife had required a conservation deposit equivalent to four per cent of the project cost.
When the project cost stood at Rs 5,675 crore, the corresponding deposit was around Rs 227 crore. The revised estimate of Rs 56.75 crore brought the proposed deposit down to approximately Rs 2.27 crore.
The change has raised questions about the basis for the revised estimate.
Centre Directs Maharashtra to Investigate
The Environment Ministry asked the state forest department to examine the matter after a complaint alleged that the revised project cost was incorrect.
The state forest department has also initiated an inquiry. The investigation is expected to examine the documents submitted by the company and the process followed by the authorities.
What Has Adani Green Said?
An Adani Group spokesperson told The Indian Express that the project components are located on privately owned land and do not involve forest land.
The company also said that the project would not adversely affect downstream ecology, forests or wildlife during operations.
However, the spokesperson did not specifically respond to the question about the revised project cost.
Environmental and Regulatory Questions
The case has drawn attention to the relationship between large infrastructure projects and environmental protection.
Pumped storage projects can support renewable energy by storing electricity and supplying it when demand rises. However, projects near sensitive ecological areas require careful scrutiny.
The investigation will be important in determining whether the revised cost estimate followed the applicable rules and whether the conservation requirements were properly assessed.
