Why did Gautam Adani deal with an Israeli port at such an expensive price?
India’s most famous businessman Gautam Adani has bought Israel’s second major port and Israeli Prime Minister termed the deal as a ‘milestone’ for Israel and India while Gautam Adani says he wants to invest more in Israel will do
This deal is happening at a time when the Adani group is facing problems and according to the latest report of the American investment research company ‘Hundenberg’, Adani group’s name in the list of Asia’s richest personalities has come down
That is why Adani Group is taking special interest in the purchase of Israel’s biggest entertainment destination and second largest commercial port.
It may be noted that this deal between Adani Group and Israel is the largest investment by any foreign company in Israel in the last decade.
The Adani Group is the world’s largest port builder, operator and operator. Tenders were opened in July last year to lease this major port of Israel and Adani Group and Special Economic Zone Limited were placed in the competition.
The term of this lease is till the year 2054. Under the deal, 70 percent of the Israeli port’s revenue would go to the Adani Group, while 30 percent would be owned by the Israeli company, Godat.
The Israeli newspaper Haaretz published an article last July regarding the recent contract, which said that no other company could match what Adani Group had offered to win the tender.
According to this article, ‘Adani group had been trying for two years to lease Haifa port and when this group put in a bid, it was 55 percent more than the second bid. Israel estimated the deal to be worth up to $870 million, but the Adani Group offered an estimated $18 billion, which was far higher than the Israeli government’s estimates.
When Israeli companies came to know that Adani Group has offered such a huge investment, they withdrew their tenders.
The newspaper further said that such an unexpected offer from the Adani group made it clear that in Gautam Adani’s view it was not just a business deal, but he sees this investment in the context of relations between Israel and India. And also understand the military importance of this port very well.
According to Israel-based Indian journalist Harinder Mishra, “This is not a business deal, but a strategic decision.” Mr. Adani’s offer was so huge that Israeli companies and the Israeli government itself were taken aback because the condition of this port is so bad. The condition of this port is unique not only in terms of facilities and infrastructure but also in terms of management. Putting this situation in front of you (you think that) there is some big reason behind such a big offer from Adani group. Work is still going on at the port.
China’s fear and American pressure
13 terminals are managed by the Nasq Adani Group at various ports in India and the group’s share in the country’s total commercial income is 24 percent.
Adani Port has no investment in western countries.
In this context, it is being said that Adani Group’s investment in Israel’s Haifa Port will increase trade between Asia and Europe and Adani Group will become a major Asian player commercially in the Gulf countries.
Last year, when this agreement was finalized, Gautam Adani had said in a tweet that ‘this agreement is of diplomatic and commercial importance. I am happy to be here in Haifa, at the place where in 1918 the Indian cavalry led the biggest campaign in military history.
On July 14, when US President Joe Biden was on a visit to Israel, an unexpected summit was held at that time, which was a huge step in the embassy world.
The summit was attended by Joe Biden, Israeli Prime Minister Narendra Modi and United Arab Emirates ruler Mohammed bin Zayed.
The purpose of this conference was to promote trade between the United States, Israel, India and the United Arab Emirates. This conference was also seen as an alliance against the alliance established between China, Iran and Pakistan.
The results of the conference also started coming out soon and on the same day this conference was organized, Gautam Adani accepted the offer of Najkari of Haifa port.
Harinder Mashra says that Mr. Adani had done the deal of revenue of this port on the same day on which these four countries had organized this conference. It is said that a lot of pressure was being exerted from the US side for this agreement because America did not want any Chinese company to deal with this port.
In July 2019, another port located near Haifa was acquired by China on a 25-year lease. Since America is a big ally of Israel, that’s why there was a stir in the American administration on this investment of China.
America feared that after countries in Africa and East Asia, China could strengthen its presence in Israel as well.
It should be remembered that there is a long history of cooperation between the US and Israel in matters of national security and an example of this is that the US has always received cooperation from Israel against Iran.
Harinder Mashra says that America is behind the ‘agreement’ of Haifa port because America does not want to give any chance to China (to invest in Israel). America was putting constant pressure on Israel not to make any deal with China. But in response to this, Israel said that if no other company comes forward at the time of calling for tender, then the deal will be done with the (Chinese) company which has submitted the tender. In such a situation, America made sure that whatever happens, this port should not fall into the hands of China. Apart from this, it is also important that India is a close ally of Israel, so the increasing influence of China in Israel was a cause of concern for India as well as for India.
ten’s largest investment in israel
Israeli analysts say the deal with Adani Group is the largest example of foreign investment in Israel.
The location of the port of Haifa is very important from the military point of view, because this port can prove to be a major center of common interests of Asia and Europe in the Gulf of Rome.
Many analysts believe that once the port of Haifa becomes functional, the importance of the Suez Canal will also decrease.
According to Harinder Mashra, the arrival of ‘India’ at this port is also important in the context that if this port is to become the center of the region, Israel’s cooperation with its neighboring countries (Lebanon, Jordan and Sham) will also increase. Israel’s relations with these countries are not very good, but if India joins the project of this port, it will be easier to bring Israel’s neighboring countries closer.
It is being said that in the coming years Adani Group will also lay railway tracks here, after which Haifa and Saudi Arabia via Jordan will also be connected through railways.
At the announcement of the agreement on Tuesday, in the presence of Gautam Adani, Israeli Prime Minister Netanyahu said that the settlement of this agreement at this point is a milestone.
‘India had liberated this city 100 years ago and today India is strengthening Israel economically through this port.’
September 23 is celebrated in Israel as ‘Yom Haifa’ because on this day in 1918, during the First World War, Haifa was liberated from Turkish and German forces by the Indian horsemen fighting on the side of the British Raj. ۔
