Opinion Ashok Gulati writes: How Gautam Adani can help save the environment and increase farmers’ income
Billionaires like Gautam Adani can help increase farmers' incomes by funding solar trees on their farms
The question is whether Adani can scale it a million times and create a revolution with farmers generating solar power along with food crops. (Illustration: C R Sasikumar) 
If there is one wish I would like to make for 2023, it is for shared peace and prosperity for all.
All efforts to propel economic growth are for the prosperity of people. But GDP growth rates, the absolute size of GDP, and even per capita income, do not fully capture the prosperity of the masses. Increasing inequalities are a reality in India and most developing nations. Simon Kuznets told us decades back that it is going to happen as economies open up and growth accelerates, before it stabilises and even declines as those left behind start catching up. But how do they catch up with the front runners? It can happen only when one invests heavily in their skills, education, access to finance (capital/technology) and innovative models of development that dovetail inclusiveness with faster growth plans.
In 2022, India has registered the highest growth rate amongst all G20 countries and it is likely to do so even in 2023. That’s a matter of pride. And within India, when we talk about growth and wealth creation, one name stands out — Gautam Adani. In a recent interview with India Today, he revealed that his rise started with the liberalisation of economic policies during Rajiv Gandhi’s time, and got momentum with the 1991 reforms. But the year 2022 has seen the most explosive growth with his net worth rising to about $125.8 billion (as per the Forbes list on December 28, 2022) making him the richest man in Asia and third-richest in the world.
Many critics say this is all due to his proximity to Prime Minister Narendra Modi. But then, why is the Chief Minister of Rajasthan hosting him as he announced plans to invest about Rs 65,000 crore in setting up a mega solar power plant of 10,000 MW, expanding a cement plant, and upgrading the Jaipur airport? Similarly, why did the Tamil Nadu government support him in setting up one of the largest solar power plants at Kamuthi? Even the West Bengal government has been wooing him for investment and the upgradation of its ports. The reality is that most of the top business houses work with all governments so long as it makes economic sense to them. Be it Adani, Reliance, Tatas, Wipro, and others — they all create wealth and millions of well-paid jobs. That’s their contribution to society. But they also give back to society through their CSR activities as well as through family foundations and trusts.
A few years back, Azim Premji pledged to give away about half of his wealth to the society through Azim Premji Foundation. He topped the EdelGive Hurun India Philanthropy List in 2020. How many people are aware that Gautam Adani’s foundation is committing Rs 60,000 crore to give back to society through promoting better health, education, and skill development? This, said Adani, was the best gift on his 60th birthday.
While all this is commendable, I feel there could also be an alternative model for shared prosperity. And that is making the less privileged partners in the journey of wealth creation. Let me elaborate. Since Gautam Adani is committing Rs 60,000 crore through the Adani Foundation to give back to society, here is a small idea that can make millions prosperous, if he takes it up as a priority.
The largest share of India’s working population is engaged in agriculture (about 46 per cent). Their education levels are low and the average holding size is small (1.08 ha). The average household income hovers below Rs 20,000 per month at current prices. Of course, many marginal farmers earn even less than this. This is not enough to provide a sustainable demand base for a manufacturing revolution in India. Educating these people at a large scale or even creating new skills may be a long-drawn process. So, here is an idea that can augment their incomes substantially and quickly.
Adani aims to be the largest player in green energy, especially solar. Solar farms today need a lot of land that is degraded. But land is scarce in India and I am not sure how far this model can be scaled up. The alternative is to have solar as a third crop on farmers’ fields. The designing of solar panels and structures has to be done in a manner that allows enough sunlight to come through for photosynthesis of crops below. Farmers can keep growing two crops below these solar trees that are about four meters high. The investment in solar panels will be done largely by entrepreneurs (say Adani Green Energy) with some equity participation by the farmers (say 10 to 15 per cent). Farmers will maintain these solar trees regularly. Power will be generated throughout the year and it can be fed to the grid at an agreed price. The farmer will get rent for his land and a share in the profits of power generation.
This idea is being tried in a number of countries, including India. Our research in this area led to the setting up of a pilot in Ujwa KVK in the Najafgarh area in Delhi with the help of former Lt Governor of Delhi, Anil Baijal. Just two kilometres from the site of the pilot project, an entrepreneur, Surinder Ahuja (CEO, SUNMASTER), has tried out this idea on four acres and he is offering Rs 1.25 lakh per acre/year to farmers for using their land for solar and agriculture activities. This doubles farmers’ income within six months.
The question is whether Adani can scale it a million times and create a revolution with farmers generating solar power along with food crops. Only then can the farmer become not only anna daata but also urja daata (giver of food as well as solar energy). This will be a true shared prosperity model.
Gulati is Distinguished Professor at ICRIER. Views are personal
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