Ethics & Policy

Dhamra LNG Terminal Built Entirely On Promoter Finance; No Fin Commitment From IOC, GAIL: Sources

Published

2 years ago

October 30, 2023

Dhamra LNG (Photo: official website)

New Delhi: Adani Group built an LNG import facility at Dhamra in Odisha entirely based on financial backing of promoters, with no financial undertaking or guarantees of public sector giants IOC and GAIL, who merely were tenants, sources said.

Clarifying the group’s position, they said Indian Oil Corporation (IOC) and GAIL (India) Ltd have hired capacity on the newly built terminal at rates lower than a similar but older and depreciated facility at Dahej in Gujarat.

This came in response to reported comments by Trinamool Congress MP Mahua Moitra, who is facing a Lok Sabha Ethics Committee examination over cash for query in Parliament, on Dhamra being built on financial backing and commitments to buy gas at a fixed price.

The project cost of Dhamra LNG terminal is Rs 6,450 crore, the sources said responding to Moitra’s assertion that the terminal to import natural gas in its liquid form, called LNG, was built at a much higher cost than Rs 5,000 crore that IOC incurred in construction of a similar sized facility at Ennore in Tamil Nadu.

Sources said no amount upfront or during the project either as cash or bank guarantee has been given by IOC and GAIL.

The project is fully financed by equity and debt by shareholders of Dhamra LNG terminal, they said, rejecting the assertion that IOC and GAIL paid Rs 46,500 crore.

IOC had in 2015 signed to use up to 60 per cent of the terminal’s 5 million tonnes a year capacity for importing gas for its refineries at Haldia in West Bengal and Paradip in Odisha. GAIL too had signed up for 1.5 million tonnes of the terminal’s regasification capacity.

Sources asserted that its tariff and commercial terms of Dhamra LNG terminal (inclusive of port charges) was arrived at through competitive benchmarking.

Petronet LNG (which is owned by IOC, GAIL, BPCL and ONGC) operates India’s largest LNG terminal at Dahej was used as benchmarking the tariff and commercial terms, they said. Dhamra tariff is 1.5 per cent lower (Rs 46.49 per ton or Rs 21 crore annually over 4.5 million tonnes of LNG capacity use) than Dahej LNG terminal charges and has better commercial terms as well.

Moitra had, however, compared the tariff of Dhamra with Ennore, which was commissioned not so long back.

This charge compares to Rs 57.38 per mmBtu regasification charges for Ennore LNG terminal, he had said.

Originally, IOC and GAIL had on September 21, 2016, signed a ‘non-binding’ agreement to buy a 50 per cent stake in Adani Group’s Rs 5,500-crore Dhamra LNG project in Odisha. But that agreement expired on September 20, 2018, without being translated into a firm pact apparently because of differences over valuation.

Sources said IOC and GAIL import LNG on their own and only pay tolling charges. Dhamra LNG will not buy and sell LNG during the operations of the facility. It only provides the service of LNG handling and dispatch, they said, rejecting the claim of a 20-year fixed payment by IOC and GAIL to Adani for gas.

On a charge that businessman Darshan Hiranandani posed questions on Adani Group using Moitra’s parliamentary logins as his business was impacted because of IOC and GAIL committing to Dhamra, sources said Hiranandani’s H-Energy had obtained a NOC from the Kolkata Port Trust to set up a LNG terminal in Kukrahati in February 2020. Though this NOC is still valid, they have been unsuccessful in progressing the same.

This terminal of H-Energy would cater to the same catchment area being serviced by Dhamra LNG, they said.

H-Energy was also looking at IOC and GAIL to book capacity for their terminal. However, they were unable to justify a value proposition to IOC and GAIL that was better than what was being offered at Dhamra LNG terminal. This stymied their efforts to develop this facility, sources claimed.

On IOC and GAIL not taking equity in Dhamra, they said the LNG terminal was able to offer commercially competitive terms to the users and given the pipeline tariff competitiveness of supplying nearby consumption centres, IOC and GAIL were confident of bringing LNG at the cheapest terms via Dhamra to their consumption centres.

Hence, their strategic objective was met without injecting equity and they decided to progress on a capacity booking basis only. The strong credentials of the project developers and the significant amount of pre-investment undertaken by Adani gave further confidence to IOC and GAIL on project completion, they added.

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Ethics & Policy

Navigating the Investment Implications of Regulatory and Reputational Challenges

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9 hours ago

August 31, 2025

BlockByte

The generative AI industry, once hailed as a beacon of innovation, now faces a storm of regulatory scrutiny and reputational crises. For investors, the stakes are clear: companies like Meta, Microsoft, and Google must navigate a rapidly evolving legal landscape while balancing ethical obligations with profitability. This article examines how regulatory and reputational risks are reshaping the investment calculus for AI leaders, with a focus on Meta’s struggles and the contrasting strategies of its competitors.

The Regulatory Tightrope

In 2025, generative AI platforms are under unprecedented scrutiny. A Senate investigation led by Senator Josh Hawley (R-MO) is probing whether Meta’s AI systems enabled harmful interactions with children, including romantic roleplay and the dissemination of false medical advice [1]. Leaked internal documents revealed policies inconsistent with Meta’s public commitments, prompting lawmakers to demand transparency and documentation [1]. These revelations have not only intensified federal oversight but also spurred state-level action. Illinois and Nevada, for instance, have introduced legislation to regulate AI mental health bots, signaling a broader trend toward localized governance [2].

At the federal level, bipartisan efforts are gaining momentum. The AI Accountability and Personal Data Protection Act, introduced by Hawley and Richard Blumenthal, seeks to establish legal remedies for data misuse, while the No Adversarial AI Act aims to block foreign AI models from U.S. agencies [1]. These measures reflect a growing consensus that AI governance must extend beyond corporate responsibility to include enforceable legal frameworks.

Reputational Fallout and Legal Precedents

Meta’s reputational risks have been compounded by high-profile lawsuits. A Florida case involving a 14-year-old’s suicide linked to a Character.AI bot survived a First Amendment dismissal attempt, setting a dangerous precedent for liability [2]. Critics argue that AI chatbots failing to disclose their non-human nature or providing false medical advice erode public trust [4]. Consumer advocacy groups and digital rights organizations have amplified these concerns, pressuring companies to adopt ethical AI frameworks [3].

Meanwhile, Microsoft and Google have faced their own challenges. A bipartisan coalition of U.S. attorneys general has warned tech giants to address AI risks to children, with Meta’s alleged failures drawing particular criticism [1]. Google’s decision to shift data-labeling work away from Scale AI—after Meta’s $14.8 billion investment in the firm—highlights the competitive and regulatory tensions reshaping the industry [2]. Microsoft and OpenAI are also reevaluating their ties to Scale AI, underscoring the fragility of partnerships in a climate of mistrust [4].

Financial Implications: Capital Expenditures and Stock Volatility

Meta’s aggressive AI strategy has come at a cost. The company’s projected 2025 AI infrastructure spending ($66–72 billion) far exceeds Microsoft’s $80 billion capex for data centers, yet Meta’s stock has shown greater volatility, dropping -2.1% amid regulatory pressures [2]. Antitrust lawsuits threatening to force the divestiture of Instagram or WhatsApp add further uncertainty [5]. In contrast, Microsoft’s stock has demonstrated stability, with a lower average post-earnings drawdown of 8% compared to Meta’s 12% [2]. Microsoft’s focus on enterprise AI and Azure’s record $75 billion annual revenue has insulated it from some of the reputational turbulence facing Meta [1].

Despite Meta’s 78% earnings forecast hit rate (vs. Microsoft’s 69%), its high-risk, high-reward approach raises questions about long-term sustainability. For instance, Meta’s Reality Labs segment, which includes AI-driven projects, has driven 38% year-over-year EPS growth but also contributed to reorganizations and attrition [6]. Investors must weigh these factors against Microsoft’s diversified business model and strategic investments, such as its $13 billion stake in OpenAI [3].

Investment Implications: Balancing Innovation and Compliance

The AI industry’s future hinges on companies’ ability to align innovation with ethical and legal standards. For Meta, the path forward requires addressing Senate inquiries, mitigating reputational damage, and proving that its AI systems prioritize user safety over engagement metrics [4]. Competitors like Microsoft and Google may gain an edge by adopting transparent governance models and leveraging state-level regulatory trends to their advantage [1].

Conclusion

As AI ethics and legal risks dominate headlines, investors must scrutinize how companies navigate these challenges. Meta’s struggles highlight the perils of prioritizing growth over governance, while Microsoft’s stability underscores the value of a measured, enterprise-focused approach. For now, the AI landscape remains a high-stakes game of regulatory chess, where the winners will be those who balance innovation with accountability.

Source:
[1] Meta Platforms Inc.’s AI Policies Under Investigation and [https://www.mintz.com/insights-center/viewpoints/54731/2025-08-22-meta-platforms-incs-ai-policies-under-investigation-and]
[2] The AI Therapy Bubble: How Regulation and Reputational [https://www.ainvest.com/news/ai-therapy-bubble-regulation-reputational-risks-reshaping-mental-health-tech-market-2508/]
[3] Breaking down generative AI risks and mitigation options [https://www.wolterskluwer.com/en/expert-insights/breaking-down-generative-ai-risks-mitigation-options]
[4] Experts React to Reuters Reports on Meta’s AI Chatbot [https://techpolicy.press/experts-react-to-reuters-reports-on-metas-ai-chatbot-policies]
[5] AI Compliance: Meaning, Regulations, Challenges [https://www.scrut.io/post/ai-compliance]
[6] Meta’s AI Ambitions: Talent Volatility and Strategic Reorganization—A Double-Edged Sword for Investors [https://www.ainvest.com/news/meta-ai-ambitions-talent-volatility-strategic-reorganization-double-edged-sword-investors-2508/]

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Ethics & Policy

7 Life-Changing Books Recommended by Catriona Wallace | Books

Published

1 day ago

August 30, 2025

Girish Shukla

7 Life-Changing Books Recommended by Catriona Wallace (Picture Credit – Instagram)

Some books ignite something immediate. Others change you quietly, over time. For Dr Catriona Wallace—tech entrepreneur, AI ethics advocate, and one of Australia’s most influential business leaders, books are more than just ideas on paper. They are frameworks, provocations, and spiritual companions. Her reading list offers not just guidance for navigating leadership and technology, but for embracing identity, power, and inner purpose. These seven titles reflect a mind shaped by disruption, ethics, feminism, and wisdom. They are not trend-driven. They are transformational.

1. Lean In by Sheryl Sandberg

A landmark in feminist career literature, Lean In challenges women to pursue their ambitions while confronting the structural and cultural forces that hold them back. Sandberg uses her own journey at Facebook and Google to dissect gender inequality in leadership. The book is part memoir, part manifesto, and remains divisive for valid reasons. But Wallace cites it as essential for starting difficult conversations about workplace dynamics and ambition. It asks, simply: what would you do if you weren’t afraid?

2. Women and Power: A Manifesto by Mary Beard

In this sharp, incisive book, classicist Mary Beard examines the historical exclusion of women from power and public voice. From Medusa to misogynistic memes, Beard exposes how narratives built around silence and suppression persist today. The writing is fiery, brief, and packed with centuries of insight. Wallace recommends it for its ability to distil complex ideas into cultural clarity. It’s a reminder that power is not just a seat at the table; it is a script we are still rewriting.

3. The World of Numbers by Adam Spencer

A celebration of mathematics as storytelling, this book blends fun facts, puzzles, and history to reveal how numbers shape everything from music to human behaviour. Spencer, a comedian and maths lover, makes the subject inviting rather than intimidating. Wallace credits this book with sparking new curiosity about logic, data, and systems thinking. It’s not just for mathematicians. It’s for anyone ready to appreciate the beauty of patterns and the thinking habits that come with them.

4. Small Giants by Bo Burlingham

This book is a love letter to companies that chose to be great instead of big. Burlingham profiles fourteen businesses that opted for soul, purpose, and community over rapid growth. For Wallace, who has founded multiple mission-driven companies, this book affirms that success is not about scale. It is about integrity. Each story is a blueprint for building something meaningful, resilient, and values-aligned. It is a must-read for anyone tired of hustle culture and hungry for depth.

5. The Misogynist Factory by Alison Phipps

A searing academic work on the production of misogyny in modern institutions. Phipps connects the dots between sexual violence, neoliberalism, and resistance movements in a way that is as rigorous as it is radical. Wallace recommends this book for its clear-eyed confrontation of how systemic inequality persists beneath performative gestures. It equips readers with language to understand how power moves, morphs, and resists change. This is not light reading. It is a necessary reading for anyone seeking to challenge structural harm.

6. Tribes by Seth Godin

Godin’s central idea is simple but powerful: people don’t follow brands, they follow leaders who connect with them emotionally and intellectually. This book blends marketing, leadership, and human psychology to show how movements begin. Wallace highlights ‘Tribes’ as essential reading for purpose-driven founders and changemakers. It reminds readers that real influence is built on trust and shared values. Whether you’re leading a company or a cause, it’s a call to speak boldly and build your own tribe.

7. The Tibetan Book of Living and Dying by Sogyal Rinpoche

Equal parts spiritual guide and philosophical reflection, this book weaves Tibetan Buddhist teachings with Western perspectives on mortality, grief, and rebirth. Wallace turns to it not only for personal growth but also for grounding ethical decision-making in a deeper sense of purpose. It’s a book that speaks to those navigating endings—personal, spiritual, or professional and offers a path toward clarity and compassion. It does not offer answers. It offers presence, which is often far more powerful.

The books that shape us are often those that disrupt us first. Catriona Wallace’s list is not filled with comfort reads. It’s made of hard questions, structural truths, and radical shifts in thinking. From feminist manifestos to Buddhist reflections, from purpose-led business to systemic critique, this bookshelf is a mirror of her own leadership—decisive, curious, and grounded in values. If you’re building something bold or seeking language for change, there’s a good chance one of these books will meet you where you are and carry you further than you expected.

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