Forbes Asia recently published an article, entitled “Doing Big Business in Modi’s Gujarat“, that exposes the political context and the influence of Big Business interests in the development of the Tata Mundra Coal Plant.
The project has faced growing opposition by fishing companies over the national and World Bank policy violations, which were confirmed in an independent audit report released last October.
The World Bank’s continued involvement in the project means that it has to operate not just within its bilateral lending agreement with the Tata company, but also within the larger political dynamics in Gujarat run by Modi, who is the leading Prime Minister candidate. As a result, the project funding is exposed to political risks that are more complicated than ever.