India could've faced unmitigated disaster had govt not taken timely action on COVID-19: Adani

The chairman of infrastructure conglomerate Adani Group said it was an opportune time to make a bet on India as it will be one of the world's top consumption centres, manufacturing and service hubs and a beacon of stable democratic governance.

New Delhi: India could have faced unmitigated disaster with global ramifications had the government delayed taking decisions based on best available information following the COVID-19 outbreak, billionaire Gautam Adani said.

The chairman of infrastructure conglomerate Adani Group also said it was an opportune time to make a bet on India as it will be one of the world's top consumption centres, manufacturing and service hubs and a beacon of stable democratic governance.

"What we must realise is that there are no absolute right or wrong ideas. What is required during an unprecedented crisis like COVID-19, is a Government that is willing to make decisions based on best available information at a given point of time and constantly adapting as new information becomes available.

"For this, the Indian Government and bureaucracy must be complimented," Adani said in the Chairman's message section of Adani Enterprises' annual report released on Wednesday.

"Countries with greater resources than ours have struggled and while our battle with the virus is far from over, I have no hesitation in stating that had the decisions that got made been delayed we could have been facing an unmitigated disaster that would not just impact India but have global ramifications," he added.

Yes, business has suffered immensely, lives and jobs have been lost, and the migrant worker crisis saddened the entire nation, but the consequences of the unknown alternates would be far grimmer, Adani said.

Terming the parts played by leaders, doctors, healthcare workers, police, army, street vendors and citizens to support each other during pandemic as "truly what defines India and its resiliency", Adani said the government is now able to do direct benefits transfer as a result of the integrated approach it has built through the Jan Dhan, Aadhaar and Mobile linking systems.

"Sitting where we are today, I can say that history is in process of being scripted. I will be the first to admit that I have no way of predicting the short or mid-term possible economic outcomes as a result of COVID-19.

"However, there cannot be any denying the fact that India over the next several decades will be a market continuously on the up and one that simply cannot be ignored," he said.

It will be one of the world's top consumption centres, manufacturing and service hubs and a beacon of stable democratic governance, the billionaire said, adding if there was a time to make a bet on India, there may not be a better time than now.

"What I can predict is that on the other side of this crisis will emerge massive new opportunities, will emerge great new leaders, will emerge terrific businesses, and will emerge a few stronger nations. Those that succeed will be the ones that understand that resilience is built on the other side of the tunnel of crisis and we are already getting ready for this," he said.

About group performance, he said each one of the six publicly traded companies performed well "even as we started to confront the trying circumstances following the first few weeks of 2020."

While the group may have to do need-based course correction in strategies in the wake of the challenge it faces, the roadmap remains clear, he said.

At the group level, the focus is on optimising capital utilisation, redesigning the organisational structure to minimise risk in businesses and funding operations in phases, Adani said.

During the year, the group has been able to bring strategic global equity partners in Adani Gas Ltd, Adani Green Energy Ltd and Adani Electricity Mumbai Ltd (AEML), he said, adding the total investment is USD 1.6 billion which will help drive future growth of businesses.

AEML (part of Adani Transmission) recently completed an investment grade, USD 1 billion bond issuance, the first by a private integrated utility from India, he said.

The issue generated significant interest from international investors and was oversubscribed 5.9 times.

"I must also mention here that APSEZ raised USD 750 million by selling overseas bonds, the proceeds from which would be used for fund expansion and further reduce the cost of debt and progressively further deleverage the balance sheet.

"In the preceding 12 months, the Group has successfully placed seven bonds in the international markets, totaling to USD 4.26 billion," he said.

(PTI Report)