“Given the multiplier effect, the Government of India has rightly focused on infrastructure development by raising its funding by 16% to over 11 lakh crore for this financial year,” the Adani group chairman told shareholders of Adani Enterprises at its annual general meeting (AGM).
Over the next few years, the core infrastructure group that has businesses ranging across ports, green energy, cement, airports, power and transmission plans to set up the largest energy installation, redevelop the largest slum and make the largest single-location copper smelter of the world in the country.
While the narrative at a national level is setting up the stage for spending on infrastructure, a lot of action is being witnessed at the state level as well, Adani said. “In our case, with our operations spread across 24 Indian states, we are first-hand witnesses to the critical role state governments play in implementing the initiatives,” he said.
Adani Green Energy is setting up the world’s largest renewable energy park in the Khavda region of Gujarat, which will have the capacity to produce 30 GW of energy.While the project is expected to be completed in five years, it is already generating 3,000 MW of clean energy. Adani Green Energy plans to invest 1.5 lakh crore, while the group will invest a total of 2.3 lakh crore in renewable energy by 2030.The group will also be redeveloping the world’s largest slum, Dharavi in Mumbai, over the next decade, which includes the rehabilitation of over one million residents.“This ability to conceptualise and then handle complexity and execute very large projects in difficult conditions is an unmatched competency that we continue to get better at,” Adani said.
With a growth rate of more than 7% each year, India is set to become the world’s third-largest economy by 2030. And while the economy inches towards the $10-trillion mark by 2032, the spending on infrastructure is expected to grow by 20-25% each year on a compounded basis, reaching a cumulative spend of $2.5 trillion.
“Given that at the very core we are an infrastructure company, we are well positioned to capitalise on the upcoming opportunities,” Adani said.
All-time high earnings, robust cash on books and low leverage will further aid the group’s efforts, he said.
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