Feb 6, 2023
Adani Crisis Shows Need for Good Governance, G-20 Sherpa Says
(Bloomberg) -- The crisis engulfing Gautam Adani’s indebted conglomerate shows the need for good governance and transparency, according to India’s sherpa to the Group of 20 nations.
“The lesson for everyone is that we should believe in top class governance and we should open our books and records to everyone in the world,” Amitabh Kant said Monday in an interview. “We should ensure we do projects in a manner where we don’t end up doing anything that leads to over-leveraging.”
A stock rout across Adani’s empire has entered a third week, with 6 of the group’s 10 stocks closing lower in Mumbai on Monday. “I’m quite sure that Adanis will also bounce back in due course,” Kant said.
Read more: Adani Stock Selloff Enters Third Week as $117 Billion Wiped Out
India’s main opposition party staged protests Monday to highlight the risks to millions of small investors from the exposure of state-owned institution’s to Adani companies. Authorities made an attempt over the weekend to ease concerns, saying regulators are competent enough to deal with the fallout and insisting that banks’ exposure to the group are within limits.
Adani’s turmoil shouldn’t cause major risks to India’s plans for climate action, despite the tycoon’s pledges to invest heavily in clean energy, according to Kant.
“Much of this agenda is being driven not only by the big companies but also a lot of young entrepreneurs,” he said.
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