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Adani Group denies cancellation of Sri Lanka power purchase deal, says it is committed to invest $1 bn for green projects

Adani Group denies cancellation of Sri Lanka power purchase deal, says it is committed to invest $1 bn for green projects

Adani Green Energy's stock experienced a decline following the news of Sri Lanka's termination of the power purchase agreement, reaching a daily low of Rs 1,008

Staff Writer

The Adani Group, led by Gautam Adani, has clarified that the reports of Sri Lanka officially revoking a power purchase agreement with the Indian conglomerate due to corruption allegations are inaccurate and deceptive.

Early in the day news agency AFP reported that Sri Lankan President Anura Kumara Dissanayake's administration conducted an investigation into the Adani group's local projects following allegations of bribery and concealing payments from investors by the US on November 19, 2024.

Clarifying the news report, the Adani Group issued a statement: "Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the PPA has not been revoked. The Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies. Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth."

Adani Green Energy's stock experienced a decline following the news of Sri Lanka's termination of the power purchase agreement, reaching a daily low of Rs 1,008. Shares of Adani Green Energy were down by 0.93% and closed at Rs 1,011.95.

In May 2024, the former government in Sri Lanka had reached a deal to purchase electricity at a rate of US$0.0826 per kilowatt from an Adani wind power facility planned for construction in the northwest region of the island in the country.

Opposition to the agreement came from activists who believed that smaller renewable energy projects were able to provide electricity at a significantly lower cost compared to Adani's proposal.

Furthermore, the planned development of Adani's 484-megawatt wind power plant in the coastal areas of Mannar and Pooneryn is currently being challenged in the Supreme Court on grounds of environmental concerns.

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Leaders

90-hour work week: Elon Musk, Aadit Palicha, Shantanu Deshpande all wanted more hours on job

90-hour work week: Elon Musk, Aadit Palicha, Shantanu Deshpande all wanted more hours on job

In India, a 48-hour work week is a norm and any additional hours are classified as overtime as per the country's labour regulations.

Staff Writer

In less than 48 hours, SN Subrahmanyan, Chairman of L&T, received strong criticism for his recent comments regarding working hours. A video of him discussing the need for employees to work 90 hours per week, even on Sundays, in order to maintain competitiveness, has gone viral. This video, in which Subrahmanyan addresses a query about mandatory Saturday work, has sparked controversy among viewers regarding the impact of such a work culture on the mental health of employees.

In the video, Subrahmanyan had responded to an employee's question about mandated working on Saturdays by saying: “I regret I am not able to make you work on Sundays, to be honest. If I can make you work on Sundays, I will be more happy because I work on Sundays also… What do you do sitting at home? How long can you stare at your wife? Come on, get to the office and start working.”

Unfortunately, Subrahmanyan is not the first industry leader to propose extended work hours in India, where a 48-hour work week is a norm and any additional hours are classified as overtime as per the country's labour regulations. Earlier, Infosys co-founder Narayana Murthy had suggested a 70-hour work week for Indians. But here are more names who wanted the workers to slog it out.

Tesla CEO Elon Musk promoted the idea of long working hours and eliminated remote work across all his companies last year. According to Musk, putting in 80 to 100-hour weeks consistently can increase the chances of success. 

Musk emphasized that working more than the standard 40-hour week can lead to achieving greater results. In a tweet, he stated that significant changes and world-altering innovations are not made by working just 40 hours a week.

"There are way easier places to work, but nobody ever changed the world on 40 hours a week," Musk first said in 2018. 

In a 2023 interview, NR Narayana Murthy, the founder of Infosys, suggested that in order for India to be competitive with economies that have seen significant growth in the past few decades, young people should commit to working 70 hours a week. 

He emphasized the need to enhance work productivity in India, calling it one of the lowest in the world. Addressing issues such as government corruption, bureaucratic delays, and decision-making inefficiencies, he underscored the importance of overcoming these obstacles to succeed globally. 

Drawing from his own experience of working 85-90 hours a week until retirement, the 78-year-old entrepreneur urged the younger generation to prioritize their commitment to the country by dedicating themselves to long hours of work.

“India’s work productivity is one of the lowest in the world. Unless we improve our work productivity, unless we reduce corruption in the government at some level, because we have been reading I don’t know the truth of it, unless we reduce the delays in our bureaucracy in taking this decision, we will not be able to compete with those countries that have made tremendous progress,” he said.

Jack Ma, the co-founder of Alibaba, expressed support for China's "996" work schedule, which consists of working from 9 a.m. to 9 p.m. six days a week. In 2019, Ma referred to this schedule as a "tremendous opportunity," suggesting that individuals who are passionate about their careers view the ability to work extended hours as a privilege.

Despite facing criticism for advocating for excessive work hours, Ma contended that those who are truly dedicated to their work would not view the "996" schedule as a burden. According to him, achieving success requires unwavering commitment and a willingness to endure temporary discomfort in pursuit of long-term objectives

Ola CEO Bhavish Aggawal also expressed his support for NR Narayana Murthy's proposal of a 70-hour work week, dismissing the concept of work-life balance as a Western idea. Despite facing backlash on social media for endorsing Murthy's views, Aggarwal remained steadfast in his belief that hard work and sacrifice are necessary in order to propel India towards becoming the top country in the world. 

In a podcast discussion, he said: "I received criticism for publicly supporting Mr. Murthy's statement, but I remain undeterred in my conviction that dedication and perseverance are essential for achieving our goal of becoming the leading economy."

Aadit Palicha, the 22-year-old co-founder and CEO of Zepto, acknowledged in a statement last year that his team dedicates a significant amount of time to their work, putting in 80-100 hours per week. He noted that, in hindsight, they could have achieved the same results with less stress by working half the hours. Palicha emphasized that beyond a certain point, the pursuit of money becomes less important. He attributed his team's willingness to work long hours to their passion for building Zepto and the thrill of the challenge. 

Candidly, working 80-100 hours a week, we could have probably worked half of that with a lot less stress… At a certain point, money becomes inconsequential,” he said.

In a recent LinkedIn post, Shantanu Deshpande, CEO of Bombay Shaving Company, emphasized the importance of dedicating oneself to work during the initial years of one's career. Deshpande advised young professionals to prioritize their work over leisure activities, putting in long hours and focusing on their professional development. 

Deshpande wrote: “When you are 22 and new in your job, throw yourself into it. Eat well and stay fit, but put in the 18 hour days for at least 4-5 years. I see a LOT of youngsters who watch random content all over and convince themselves that ‘work life balance, spending time with family, rejuvenation bla bla’ is important. It is, but not that early. That early, worship your work… Don’t do random rona-dhona. Take it on the chin and be relentless. You will be way better for it.”

Later, he apologised: “To those who were hurt by my post – apologies for the same. I recognise the need for nuance and context.”

The idea that longer working hours directly correlate with higher productivity and economic growth is challenged by recent research. Narayan Murthy said that India should emulate China, known for its average annual working hours of 2,169 and a GDP per capita of $14,129. However, data from Our World In Data suggests that factors such as development levels and industry play a more significant role in a country's economic output.

Countries like India and Bangladesh, where people work longer hours than in Western countries, have lower GDP per capita figures. For instance, Indians work an average of 2,123 hours annually but have a GDP per capita of $6,711, indicating that simply working longer hours does not necessarily lead to economic prosperity.

Furthermore, alternative research, such as a study from Stanford University, contradicts the notion that longer working hours contribute to greater economic prosperity and productivity. In fact, the study shows that working more than 49 hours a week can actually lead to a decrease in workforce productivity.