Adani Green Energy Hydro Power Project Cost Reduction in Maharashtra Triggers Forest Department Investigation Over Rs 224 Crore Wildlife Fee Savings
A major controversy has emerged surrounding a large hydro power project being developed by Adani Green Energy in Maharashtra. Serious questions are now being raised about whether rules meant to protect forests and wild animals were bent to save hundreds of crores of rupees. An investigation report by The Indian Express has brought to light a massive gap between the project cost recorded by the central government and the cost declared by the company to state authorities. As a result of this gap, the amount of money meant for the safety and conservation of a nearby wildlife sanctuary dropped sharply, leading to an official inquiry.
At the heart of the issue are two very different numbers for the exact same hydro power project. According to an official letter from the Union Environment Ministry, the total cost of the Adani Green Energy hydro power project is listed as Rs 5,675 crore. However, the company submitted a formal legal statement, known as an affidavit, to the Maharashtra Forest Department requesting that the project cost be treated as roughly Rs 56.75 crore. This means the project cost presented to the state forest officials was reduced to just one percent of the original figure noted by the central ministry.
What has surprised many observers and environmental experts is how easily this massive reduction was accepted. Instead of questioning why a multi-thousand crore power project was suddenly valued at just over fifty-six crore rupees, the Maharashtra Forest Department agreed to the company's request. By accepting the lower figure without raising red flags, state officials allowed the revised cost to become the official basis for calculating mandatory environmental charges.
Under standard forest and wildlife protection rules in India, companies setting up large infrastructure or power projects near protected forest areas must pay a fixed percentage of their total project cost toward wildlife conservation. This money is collected to ensure that local forests, trees, and wild animals are protected, managed, and kept safe from the impact of heavy construction and industrial activity. Because the fee is directly linked to the total cost of the project, any change in the project value immediately changes the amount the company has to pay.
When calculated on the original project cost of Rs 5,675 crore, the wildlife protection and sanctuary conservation fee stood at Rs 227 crore. However, once the Maharashtra Forest Department accepted the reduced cost of Rs 56.75 crore, this mandatory conservation fee dropped dramatically to just Rs 2.27 crore. In simple terms, this revision resulted in a direct financial saving of more than Rs 224 crore for the company, while the wildlife sanctuary lost out on nearly all the funds meant for its protection.
The sudden drop in conservation funds raised serious concerns about whether financial savings were being prioritized over nature and wildlife safety. When a project of this scale is built near sensitive forest land, the surrounding ecosystem faces long-term pressure. Funds collected under wildlife conservation rules are vital for building animal corridors, preventing human-animal conflict, improving water sources inside forests, and strengthening forest patrol teams. A reduction of over Rs 224 crore means a massive loss of resources for local wildlife management.
Following the revelation of this discrepancy, a formal complaint was filed bringing the matter to the attention of higher authorities. The complaint questioned the basis on which Adani Green Energy lowered the project valuation by ninety-nine percent and asked why the Maharashtra Forest Department silently approved the change. Once the issue reached the Union Environment Ministry in New Delhi, senior officials took note of the serious financial and environmental implications involved.
Taking swift action on the complaint, the Union Environment Ministry stepped in and directed the Maharashtra Forest Department to examine the matter on a priority basis. The central ministry made it clear that the huge difference in project cost and the resulting drop in wildlife conservation fees required an immediate and thorough review. Following these instructions from the center, the state forest department has officially started an investigation into the approval process and the affidavit submitted by the company.
The ongoing probe is expected to look closely at how the Rs 56.75 crore figure was calculated and whether the company was legally allowed to exclude major parts of the project from the cost assessment. Officials will also examine the role of state forest department officers who cleared the request without challenging the massive drop from Rs 5,675 crore. Independent observers and conservationists are watching the developments closely, as the outcome of this inquiry will determine whether the company will be asked to pay the remaining Rs 224 crore toward wildlife protection and how strictly environmental rules are enforced for large corporate projects in the future.