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Government must ensure corporate takeovers are fair, monopolies are not created: Jairam Ramesh


Congress leader Jairam Ramesh. File
| Photo Credit: The Hindu

The Congress on June 15 said it is the government’s responsibility to ensure that competition among corporates is not stifled, oligopolies or monopolies do not emerge and corporate takeovers are free and fair.

“It is also the government’s responsibility to ensure that undue advantage arising out of access to political power is not exercised,” party general secretary Jairam Ramesh said.

His comments came after the Adani Group acquired Penna Cements while strengthening its share in the cement sector in southern India.

Aap chronology samajhiye (understand the chronology): September 2022: Adani acquires Ambuja Cements and ACC, to become country’s second largest cement player. August 2023: Adani acquires Sanghi Industries, India’s largest single-location cement unit. June 2024: Adani acquires Penna Cements, giving it substantial market share even in the last remaining region of South India.” he said.

“Upcoming: Adani is exploring the acquisition of Saurashtra Cement, Vadraj Cement, and the cement business of Jaiprakash Associates,” Mr. Ramesh claimed in a post on X.

Quoting former RBI deputy governor Viral Acharya, he said the noted financial economist had established that the five big conglomerates, including the Adani Group, are building monopolies in 40 sectors, including in the cement sector.

“This growing monopolisation is linked to India’s shaky economic growth, unemployment crisis, and high inflation. In 2015, when a common man used to spend ₹100 on goods, ₹18 would go as profit to the business owner — in 2021, the owner now gets ₹36 in profits,” Mr. Ramesh claimed.

“Firms must grow. Companies must expand. But at the same time, the government has a responsibility to ensure competition is not stifled, oligopolies or monopolies do not emerge, takeovers are free and fair, and undue advantage arising out of access to political power is not exercised,” the Congress leader said in his post.



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