Adani paid entire $1.2 bn to acquire Haifa port, says Israel’s envoy to India

Israel’s envoy to India, Naor Gilon, on Wednesday said the embattled Adani Group had paid in full to acquire Haifa port, Business Today reported.

On the occasion of completion of 30 years of diplomatic relations between Israel and India, the Israeli envoy emphasised the importance of Adani’s investment as 'strategic' and looked forward to more investments by the the company in other sectors of Israel.

“We have two ports in the Mediterranean. It’s (Haifa) a strategic asset. The fact that we are giving it to an Indian company, from our point of view, is symbolic sign of deep trust in depositing your strategic assets in the hands of Indian companies,” Ambassador Gilon said.

The envoy's comments come at a time when damning allegations by a US short seller has led to a stock market sell-off for Adani Group companies.

“Adani Group’s bread and butter are ports. They have the potential to make Haifa port what it needs to be and to utilise it to increase trade between India and Israel. We are very happy with this,” he added.

Last month, the Adani Group acquired the strategic Israeli port of Haifa for $1.2 billion and vowed to transform the skyline of this Mediterranean city as part of its decision to invest more in the Jewish nation, including opening an artificial intelligence lab in Tel Aviv.

Adani Group chairman Gautam Adani, whose business empire was rocked by allegations of fraud by US short seller Hindenburg Research, appeared alongside Israeli Prime Minister Benjamin Netanyahu for signing of the deal to takeover Haifa Port, and spoke of investment opportunities.

Prime Minister Netanyahu described the Haifa port deal with the Adani Group as an ''enormous milestone'', saying it will significantly improve connectivity between the two countries in many ways.

The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

“The Adani Group paid in full for the Haifa port and there is money for development. Port infrastructure is the core business of Adani Group and they know what to do. It is a strategic asset and will be useful for India and for Israel.”

He added, “Adani Group are looking for more projects in Israel and I hope they succeed in getting it… We want our friends to be close by. We are very comfortable with India.”

To a question on Rahul Gandhi’s remarks that after Prime Minister Modi’s visit to Israel, defence contracts went to Adani; the envoy said: “We have joint ventures with 80 Indian companies which include Tata, Bell, Kalyani... To discuss one company, I don't see the issue here. Joint Ventures are between private companies, they are not pushed by Israel.”

Congress MP Rahul Gandhi had alleged in parliament, “Adani never made drones but HAL, other companies in India do that. Despite that PM Modi goes to Israel and Adani gets the contract.”

In the last six years, Adani group has struck many critical partnerships with companies such as Elbit Systems, Israel Weapon Systems, and Israel Innovation Authority.

Adani Ports & Special Economic Zone Ltd in partnership with local chemicals and logistics group Gadot in July last year won an Israel government's tender to buy the Haifa Port, a major trade hub on Israel's Mediterranean coast, for about $1.2 billion.

''The acquisition of the Haifa port also comes with a significant amount of real estate. And I promise you that in the years to come we will transform the skyline we see around us,'' said Adani.

Adani said India-Israel friendship dates back to September 23, 1918, when soldiers from the Indian cities of Mysore, Hyderabad and Jodhpur battled in Israel for the freedom of Haifa.