Maharashtra forest department seeks Adani’s response on Tarali project cost, Adani denies lowering project cost

The Maharashtra Forest Department has sought an explanation and supporting documents from Adani Green Energy Ltd over its decision to revise the declared cost of its 1,500 MW Tarali pumped storage project in Satara from ₹5,675 crore to ₹56.75 crore, officials aware of the matter said on Friday.

This was first reported by The Indian Express, which reported that Adani Green Energy had sought to sharply revise downwards the cost of the project.

The department has not accepted the revised estimate and is awaiting the company’s response, Principal Chief Conservator of Forests (Wildlife) M Srinivas Reddy said. “The company has submitted an affidavit to us regarding the reduction in the project cost. However, we have not accepted the revised estimate. We have also asked the company to explain the reduction and submit supporting documents. We are awaiting its response,” Reddy said.

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Adani rejects allegations of lowering project costs

Adani Green Energy Ltd (AGEL), in a statement on Friday, said the online proposal was submitted solely for site investigation purposes, while the State Board for Wildlife (SBWL) considered the project’s total cost at ₹5,675 crore.

“The allegation that the company sought to revise project costs downwards to diminish statutory obligations is completely misleading. The online proposal in the forest / wildlife portal was solely for site investigation purposes, while the State Board for Wildlife (SBWL) considered total project costs of ₹5,675 crore. Since site investigation costs are around 1% of project costs, therefore clarification of the project ₹56.75 crore representing solely the site investigations and survey costs, for the online proposal was provided,” it said.

“Secondly, the allegation that downward revision was intended to lower conservation costs is false. The Tarali PSP is situated entirely on private, non-forest land and 3.2 kms away from the Koyna wildlife sanctuary. It is outside the notified buffer zone of Sahyadri Tiger reserve and in no way impacts or fringes upon the tiger corridor or any notified Eco-Sensitive zone (ESZ). The project does not cause diversion of any protected areas, any reserve forest or notified ESZ,” it stated further.

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Centre orders probe into cost revision

The matter came under scrutiny after the Union ministry of environment, forest and climate change (MoEF&CC) directed the state forest department on November 6 to investigate it on priority. The environmental clearance issued by the MoEF&CC on February 11, 2025, recorded the project’s estimated cost at ₹5,675 crore. However, in a notarised affidavit submitted to the state forest department on September 8, 2026, the company apparently said the project cost had been calculated at ₹56.75 crore based on an “analogous estimation” and sought acceptance of the revised amount.

Rohan Bhate, honorary wildlife warden of Satara forest department, said: “Such a substantial revision raises serious questions about the authenticity and legal validity of the undertaking submitted by the project proponent, as well as its financial implications.”