logo
Near Adani's Jharkhand power plant, villages still struggle for basic health, education

Near Adani's Jharkhand power plant, villages still struggle for basic health, education

Scroll.in20-05-2025

An Adani power project that exports electricity to Bangladesh has faced heat from the new regime in Dhaka over the price of power. While the standoff between the company and Dhaka has made news, a recent protest in Godda, Jharkhand, where the company has built its thermal plant has largely gone unnoticed. Scroll travelled to Godda to report this two-part series.
The chimneys of Adani Power's thermal plant in Godda loom large over Gangta, a village of around 50 families, most of whom are Adivasi farmers.
In recent years, their attempts to grow more crops has led to steady groundwater depletion – a common problem in rural India. 'Earlier we used to dip buckets into the well to take out water, but in the last five years the water started drying up and now we have to dig borewells to get water,' said Robin Hembrom, a resident.
Besides, as he pointed out, in order to access water from borewells, they need to run motor pumps that pull water to the surface, but electrical supply in the village is irregular – despite its proximity to the Adani-owned power plant.
'Often, only two houses receive proper electricity, the rest get such little voltage that even bulbs don't light up properly,' said Hembrom. 'It gets difficult to run the motor for the borewell.'
He added, 'If the Adani power company is right next door generating electricity, shouldn't we get regular electrical supply at least?'
The residents of nearby Motia village echoed Hembrom. Devrat Jha said company representatives had assured them that 'free electricity would be provided' within a 5-km radius of the project. But two years after the project became operational, the village continues to face power cuts.
'Electricity comes for an hour, goes for two hours, comes for half an hour, goes for an hour,' Jha said.
In response to questions sent by Scroll, a spokesperson of Adani Power said: 'We are only a power generating company and as per regulations, we cannot undertake power distribution.'
Accurate as it may be, the company's response is unlikely to satisfy many people who live in the vicinity of the thermal plant. Several of them told Scroll that they gave up fertile farmland for the plant in the hope that a project associated with India's richest industrialist would transform their lives.
'It felt like a golden dream,' said Omkar, a resident of Motia village. 'Such a big man, Gautam Adani, was setting up a power plant in our village. We thought we would get jobs, facilities, prosperity.'
Omkar and other residents told Scroll that while trying to persuade them to part with their land, company representatives made several promises at village meetings. 'We were promised round-the-clock electricity, a good hospital, the best health centre, schools for education,' he said. 'It was a lot of big talk.'
An unusual project
Commissioned in 2023, with a capacity to generate 1,600 megawatts of power, Adani Power's thermal plant in Godda is the only private sector project in India which has been allowed to export power to another country. It is also the only standalone power project to be granted the status of a Special Economic Zone, which translates into a range of subsidies.
In addition, the Jharkhand government helped acquire land for the project by classifying it as 'public purpose', a move that was criticised by many experts. 'With the Godda plant being set up only to evacuate electricity to Bangladesh, it is critical to justify how this is public purpose for India,' Kanchi Kohli, legal research director at the Centre for Policy Research-Namati Environmental Justice Program, had told Scroll in 2018.
According to an SEZ notification issued in September 2019, about 226 hectares of land were acquired for the project from five villages. The largest contribution came from two villages – about 77 hectares from Motia, and 71 hectares from Gangta.
'When we learnt that the plant was to come here, we had high hopes,' said Devrat Jha, the Motia resident. 'We supported the company right from the start. About 300-400 of us men would go support the company in public meetings.'
But their expectations remain unfulfilled, he said. 'Use and throw is what happened to us,' Jha said. We have not benefitted from the company's arrival, instead we have been harmed.'
Disappointment with the project came to fore in April when more than 170 residents went on a hunger strike – among them were around 50 who had given up their land for the project on the assurance that they would get jobs with the company.
As reported in the first part of this series, they were unhappy at being given contractual jobs with an outsourcing company, rather than regular jobs at Adani Power.
While the protest ended a few days later after Jharkhand's labour minister assured the workers that their 'genuine demands' would be met, it ended up putting a brief spotlight on local grievances against the project.
'Promises made for basic amenities like health, water supply, electricity and education have still not been fulfilled,' said Mukesh Paswan, a landowning protestor from Motia village.
Locals recounted that many of these promises were made verbally. Arpitha Kodiveri, environmental lawyer and assistant professor at Vassar College, described this tactic as 'strategic ambiguity'.
When companies are acquiring land, she said, they 'often throw in the bargaining chip of jobs, hospitals and basic amenities' but these promises are 'very often oral and never really written down'. Further, she added, 'these promises are never broken down to specificities like where will the hospital be built or what would the school look like'.
Indeed, in official documents, the company's commitments lack specificity. The environmental impact assessment for the project, prepared in July 2018, noted that a corporate social responsibility budget of Rs 55.62 crore had been earmarked for education, sanitation, health, livelihood and rural development.
The latest environmental clearance compliance report prepared by the company in September 2024 claimed that it had undertaken 'various community development activities in Education, Community Health, Sustainable Livelihood, Rural Infrastructure Development and Climate Action verticals', benefiting '5 lakhs people directly and 13.77 lakhs people indirectly'.
In response to queries emailed by Scroll, an Adani spokesperson stated, 'the CSR Department of Adani Power Godda has actively worked in line with the commitments, focusing on holistic community development'.
The spokesperson shared letters of endorsement from the local community in which they expressed their gratitude for development work done by the company.
Health and education
In conversations with Scroll, however, residents expressed disappointment with the company. They said that they had hoped that with the construction of the power plant, they would be able to see an improvement in health and education services available to them.
A 2017 meeting report of the project's rehabilitation and resettlement committee noted that the committee 'unanimously passed a resolution that, the treatment of people from the affected area in the hospital should be done at minimum cost' – though it does not specifically lay down a commitment to build a hospital or health facility.
In its response to Scroll, the company stated, 'We provide regular health camps, mobile medical units, vaccination drives (including COVID-19), specialized health camps, renovation and upgradation of primary healthcare centres and maternal-child health services.' It did not respond to other specific queries about the state of health facilities in villages affected by the project.
In Motia village, residents complained that the company had merely inscribed its logo on the existing local government-run primary health centre, which, they alleged, remained as poorly stocked and understaffed as ever.
'They hardly have medicines, they only give paracetamol for all illnesses,' claimed Balmukund Mandal, one resident. 'If someone falls seriously ill they have to be taken to the Godda hospital.'
Scroll visited the clinic to verify these claims – government workers there declined to show us stocked medical provisions, and only stated that they had what was needed for a village clinic.
Jagatnarayan Jha, Motia's pradhan, said that doctors did not visit the clinic regularly. 'The doctors are not regular, they come on some days and skip others,' he said. 'Since the past month they have stopped coming here completely.'
The compliance report states that the Adani foundation organised 54 specialised health camps at Motia between April and September 2024 and treated a total of 861 patients.
However, Ashok Choudhary, the mukhiya of Motia, alleged, 'Their health camps are not stocked properly and the medicines are subpar.'
The compliance report also states that the foundation provided nutritional support to 353 tuberculosis patients in Godda district. Choudhary said he had not heard of these efforts.
When it came to education, according to the 2017 meeting report's resolution, '25% of the enrollment in the school opened by the company should be reserved for the children of the affected area and their tuition fee should be kept minimum'.
The only school referred to in the 2024 compliance report that was to be set up by the company was a 'state of the art school' to be opened in Ranitikar village by April 2025. Scroll phoned the district superintendent of education to ask if the school had been completed, and if the reservation was being implemented.
Though the official said he would respond with the information, he had not done so by the time of publication, despite repeated reminders.
In its response to Scroll, the company spokesperson said, 'A modern school with the latest teaching equipment and facilities is under construction at Ranitikar and is targeted to be opened for the next academic year (2026).'
Godda's education department told Scroll that Adani Foundation had improved school infrastructure in many areas within the district. 'They have built smart classrooms, provided furniture and dining sets in hostels,' said Deepak Kumar, the district superintendent of education.
Further, the spokesperson stated to Scroll that the company had provided support 'to local schools, via classroom renovation, scholarships, digital classrooms, and bridge courses. Our CSR activities cover 338 Govt Schools under Gyanoday digital learning program benefitting 90,000+ students of Godda.'
But residents in all three villages said they were dissatisfied with schools in the area.
In the local primary and secondary school in Patwa village, in one part of the school, walls were freshly painted, and adorned with the logo of the Adani Foundation. In another part, however, two classrooms lay in disrepair.
The school has around 80 students, enrolled between classes one and eight. 'We have only two teachers, so we have to combine the students belonging to classes one to four in one class, and classes five to eight in another class,' said a school representative who did not want to disclose his name because he was not authorised to speak to the media.
He added: 'The Adani company is installing solar power equipment in the school and they've also provided us TVs with pre-installed lessons. But they had also promised us laptops which they didn't give us.'
The environmental impact assessment report of the project said that 'computer facilities may be provided in the school along with a trained computer teacher to inculcate computer skill among youth', though it does not specify which school this is referring to.
The compliance report notes that the Adani Foundation started the Gyan Jyoti Tuition Program in 2018-'19 in Motia village, which coaches 30 children every year and helps them prepare for exams through 'concept building and remedial classes'. Ashok Choudhary, the mukhiya of Motia, confirmed that the programme had been running for the past six years in the village.
However, he was sceptical of a similar coaching programme for Class 6 students to prepare for the entrance exam for Jawahar Navodya Vidyalaya schools, saying it was a 'programme being run just in name'.
Choudhary also complained that the new building that Adani Foundation had constructed for an existing school in Motia, partly using government funds for local development, did not have regular teachers. 'The students just enroll at the school, but they study with tuition,' he said. 'Can you not use CSR funds and hire teachers?'
Among the letters of endorsement sent by the Adani spokesperson is one signed by Choudhary. Dated January 2025, it expresses appreciation for the company's initiatives in the spheres of health and education. Choudhary told Scroll that the letter was indeed his, but he disputed the date. He said he had written the letter in 2023 prompted by company officials who 'said that some of their work was stuck and so if I wrote such a letter they would get more funds' from the budget allocated for corporate social responsibility projects.
The letter also mentions appreciation for the company's efforts to distribute blankets among the community, as well as saplings to farmers. Choudhary told Scroll that the saplings lacked proper roots. 'They might have survived for some ten days but they died later,' he said.
Water and environment
Motia, around 2 km from the power plant, has a cluster of temples, some built just a few feet away from each other. Almost all of them have signboards embedded into their outer walls, which bear the Adani name.
But while temples abound in Motia, piped water has not reached all houses. Many households still rely on wells and handpumps for water.
Mithun Bharati and Neeraj Das, two youths from Motia walked us to the outskirts of the village to show us the condition of the wells. The main well appeared grimy, and there was moss growing in the water inside.
'Look, it's not even covered and all sorts of dust and ash keeps falling into the well,' said Bharati. Das added, 'Earlier the water was better, but now we have to filter it first before using.'
They explained that some villagers used a pond closer to the plant to bathe and wash clothes. 'In the last two years, the water there has turned so dirty that we get boils if we bathe in it, so we have stopped using it,' said Das.
Jagatnarayan Jha, the pradhan, said, 'At least they should provide water. How are people supposed to survive in this heat without water?'
In its responses, the company stated, 'The Godda unit is a zero-discharge plant, and hence there is no possibility of it affecting any water body outside its boundaries.'
It also claimed that the company had used corporate social responsibility funds to undertake 'multiple water conservation and recharge initiatives', which include the deepening and cleaning of 85 village ponds and the installation and repair of hand pumps.
Apart from struggling with a lack of water, locals also said they had observed a rise in pollution in the past five years.
Naresh Prasad Saha from Patwa village noted, 'The pollution has increased so much that our crops turn black as they are covered with grime. This requires more water to wash off.'
In Motia, too, villagers complained about the rise in pollution. 'There is so much dust on our roads,' said Devrat Jha, the resident of the village. 'Our elders who used to take morning walks on the roads have stopped doing so.'
Jagatnarayan Jha, the pradhan, contended, 'If you walk around in the streets for two hours, the insides of your nostrils will turn black.'
In its responses, the company noted that the plant 'operates on ultra-supercritical technology, which is among the most environmentally efficient and cleanest coal-based power generation technologies available today'.
The company also said that it has undertaken 'comprehensive pollution control measures' such as the deployment of 'vacuum-based road sweeping machines and water tanker-based sprinkling systems' and the development of a 'dense green belt'.
'Genuine complaints'
On April 10, the workers broke their fast on the persuasion of Jharkhand's labour minister Sanjay Yadav, who is also the elected legislator from the area. Standing next to him, the mukhiya of Motia panchayat Ashok Choudhary told Scroll that Adani Power 'had not provided any facilities under their CSR programme'.
Yadav, the minister, concurred. 'These complaints are genuine,' he said. 'These issues will be addressed in two to four days.'
However, a fortnight later residents of Motia said that the situation remained the same. 'There was talk of a meeting between the company, the community and the administration,' said Devrat Jha. 'But nothing has happened so far.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Karnataka HC directs State govt to file status report on Bengaluru stampede by June 10
Karnataka HC directs State govt to file status report on Bengaluru stampede by June 10

The Hindu

time2 hours ago

  • The Hindu

Karnataka HC directs State govt to file status report on Bengaluru stampede by June 10

A day after the celebrations of the IPL victory of Royal Challengers Bengaluru (RCB) led to the death of 11 persons and injuries to 47 others following chaos and stampede at the M. Chinnaswamy stadium, most of the injured persons were discharged from hospitals. Except for six persons, who continue to be under treatment in various hospitals, all the others were sent home, doctors said on Thursday. The tragedy unfolded near the gates of the stadium, where over 2 lakh fans had gathered to mark RCB's historic first title win in 18 years. Overcrowding and narrow passageways led to a deadly rush. Meanwhile, Karnataka Chief Minister Siddaramaiah has announced a compensation of ₹10 lakh each to the families of the deceased and free treatment to the injured persons. The Karnataka High Court, after taking suo motu congnisance of the matter, issued notice to the State, and tasked it to file a detailed status report by June 10. The State government on Thursday admitted before the High Court of Karnataka that it did not prepare to handle such a huge crowd of around 2.5 lakh on June 4 during the event organised at M. Chinnaswamy stadium in Bengaluru to celebrate RCB's victory in the Indian Premier League (IPL) 2025, which ​witnessed a stampede resulting in death of 11 persons and injuring 56 others. ​ 'Narender surrendered to Adani, China': Congress ups ante with fresh jibe at PM The Congress on Thursday upped the ante with its 'Narender-surrender' jibe at Prime Minister Narendra Modi, alleging that he 'surrendered' before billionaire Gautam Adani as well as to China. There was no immediate response from the government or the Adani Group over the Congress's accusations, but the business conglomerate has, in the past, rejected all such allegations against it. Congress leader Ajoy Kumar said the duo of Mr. Adani and Mr. Modi has left behind the Jai-Veeru duo from the film 'Sholay'. 'The process of Narendra Modi's surrender before (U.S. President Donald) Trump has happened after many years of practice,' Mr. Kumar said at a press conference at the Indira Bhawan, the All India Congress Committee (AICC) headquarters in New Delhi. 'Wherever Narendra Modi goes or whatever Adani wants — he gets the contract.... The diplomatic moves of India's prime minister have helped industrialist Mr A to expand his international business interests in ports, airports, electricity, coal mining and weapons,' the Congress leader claimed and cited examples from various countries. 'Narenderji has hurt his country's relations with her neighbours as well as with other countries by brazenly promoting Mr A's ambitions. The growth of the Mr A Group outside India over the past decade or so has been closely aligned with the diplomatic efforts of Indian Prime Minister Narendra Modi,' he alleged. Many of 'Mr A's' international deals were struck soon after Mr. Modi's official visits to certain countries or after heads of government visited India, Mr. Kumar claimed. Alleging that Mr. Modi had also 'surrendered' before China, he said 'Narender-Surrender' must apologise to the country for his 'clean chit' to the neighbouring country on its invasion of Indian territory in 2020. Mr. Kumar claimed that China has vowed to stand by Pakistan in defending its 'sovereignty' and 'territorial integrity', and called it its 'iron-clad friend'. 'China's foreign minister, Wang Yi, recently gave a statement that his country would continue to stand by Pakistan in upholding its sovereignty, territorial integrity and national independence. China has supplied arms worth over $20 billion to Pakistan,' Mr. Kumar claimed. The Congress had said on Wednesday (June 4, 2025) that it is wrong to think that 'Narendra Modi is India and India is Narendra Modi', as it slammed the ruling Bharatiya Janata Party (BJP) for its criticism of Rahul Gandhi over his dig at the Prime Minister, and doubled down on the 'Narender-surrender' jibe. Mr. Gandhi had said in Bhopal on Tuesday (June 3, 2025) that 'as soon as Trump signalled from there, picked up the phone and said, 'what are you doing Modiji? Narender, surrender'.... And Modiji obeyed Trump's orders with Ji Huzoor''. Urging people to remember 1971, Mr. Gandhi said that back then, a phone call had not been made, but the United States had sent its 7th Fleet, weapons, and an aircraft carrier. However, Prime Minister Indira Gandhi did not surrender and stated that she would act in the national interest. Referring to the BJP and the Rashtriya Swayamsevak Sangh (RSS), Mr. Gandhi said they are habituated to writing 'surrender letters' since Independence. The BJP has accused Mr. Gandhi of insulting the armed forces with his 'surrender' barb at Mr. Modi, saying it amounted to undermining the success of Operation Sindoor. Trump announces travel ban affecting dozen countries including Afghanistan and Iran U.S. President Donald Trump is resurrecting the travel ban policy from his first term, signing a proclamation Wednesday (June 5, 2025) night preventing people from a dozen countries from entering the United States. The countries include Afghanistan, Burma, Chad, the Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen. In addition to the ban, which takes effect at 12.01 a.m. Monday (June 9, 2025), there will be heightened restrictions on visitors from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela. 'I must act to protect the national security and national interest of the United States and its people,' Mr. Trump said in his proclamation. The list results from a January 20 executive order Mr. Trump issued requiring the departments of State and Homeland Security and the Director of National Intelligence to compile a report on 'hostile attitudes' toward the U.S. and whether entry from certain countries represented a national security risk. During his first term, Mr. Trump issued an executive order in January 2017 banning travel to the U.S. by citizens of seven predominantly Muslim countries — Iraq, Syria, Iran, Sudan, Libya, Somalia and Yemen. It was one of the most chaotic and confusing moments of his young presidency. Travelers from those nations were either barred from getting on their flights to the U.S. or detained at U.S. airports after they landed. They included students and faculty as well as businesspeople, tourists and people visiting friends and family. The order, often referred to as the 'Muslim ban' or the 'travel ban,' was retooled amid legal challenges, until a version was upheld by the Supreme Court in 2018. The ban affected various categories of travellers and immigrants from Iran, Somalia, Yemen, Syria and Libya, plus North Koreans and some Venezuelan government officials and their families. Mr. Trump and others have defended the initial ban on national security grounds, arguing it was aimed at protecting the country and not founded on anti-Muslim bias. However, the president had called for an explicit ban on Muslims during his first campaign for the White House. Odisha police turn Medha Patkar, activists away from Rayagada where resistance against bauxite mining simmering Several activists led by Medha Patkar were stopped by the Odisha Police and turned away after they arrived in Rayagada district to address a public meeting on World Environment Day, early Thursday. District authorities cited potential law and order concerns, stating that the activists' presence could inflame tensions in the region, where local tribals are opposing bauxite mining in the Sijimali Reserve. 'As soon as we got off the train in the early hours of Thursday, a large contingent of police personnel stopped us and said we were not allowed to leave the railway station. We are not criminals. We had come to Rayagada to speak about the importance of protecting the environment,' said Medha Patkar over phone from Rayagada. Within hours, fellow activists Lingaraj and Narendra Mohanty were forced to leave the district. A public meeting had been planned under the banner of Maa Maati Maali Surakshya Manch, Kashipur at Sunger Hatapada, where hundreds of tribals were expected to gather to hear the activists. Sunger Hatapada is located just a few kilometres from the Sijimali Bauxite Deposit, where the Vedanta Group has proposed mining 9 million tonnes of ore annually over an area of 1,549 hectares. Vedanta, one of India's largest aluminium producers, has operated its alumina refinery in Lanjigarh, Kalahandi district, without a captive bauxite mine since 2007. The company has been seeking a steady supply of raw material, making Sijimali a key target. Similar resistance had earlier derailed a mining project in the Niyamgiri hills, where the Dongria Kondh, a particularly vulnerable tribal group, successfully opposed plans to mine bauxite. The Odisha Mining Corporation, a state-run PSU, was to supply the ore to Vedanta. In Rayagada, tensions have been simmering around the Sijimali deposit for the past couple of years. Tribals allege that the district police, under pressure from the company, have been using force to suppress the people's movement against mining. An order signed by the Rayagada District Collector has barred 24 activists from entering the district for two months starting June 4. They have also been prohibited from participating in any protests or sit-ins. The Eastern Ghats hill ranges that cut across Kalahandi, Rayagada, and Koraput districts are rich in bauxite. Apart from Vedanta, private players such as the Adani Group and the Aditya Birla Group are either exploring or have already established infrastructure to mine the mineral. The National Aluminium Company Limited (NALCO), a Navaratna public sector unit, has a strong presence in Koraput district, where it is already extracting bauxite from the Panchpatmali reserve and is preparing to mine the Pottangi reserve. 'Why is the present Odisha government afraid of environmentalists and nature lovers visiting their beautiful State at the invitation of Adivasis—the true guardians of nature?' asked Ms. Patkar. 'How can we, as citizens of India, be stopped from marking a day dedicated to pledging our commitment to protect the Earth, its green cover, its farms and forests, and honouring those who have preserved them for generations?,' asked Ms. Patkar. In Brief: Assam flood situation grim, 7 lakh affected Assam's flood situation remained grim on Thursday, with nearly seven lakh people affected in 21 districts and the water level of major rivers showing a rising trend, officials said. The death toll in the first wave of the floods and landslides rose to 19, with two deaths reported on Wednesday. One person went missing in the Cachar district. Nine major rivers, including the Brahmaputra at three places, were flowing above the danger level across the state, while River Barak was flowing above the danger mark in the Cachar district, and its tributaries were also showing a rising trend, with some rivers flowing above the red mark. Calcutta High Court grants interim bail to social media influencer Sharmistha Panoli The Calcutta High Court on Thursday granted interim bail to social media influencer Sharmistha Panoli, who was arrested by Kolkata Police for a social media post on Operation Sindoor. The 22-year-old student was arrested in Gurugram and brought to Kolkata on a transit remand. The High Court, while granting interim bail to Ms. Panoli, said 'at this point there is no need of custodial interrogation'. The Calcutta High Court directed Ms. Panoli to furnish a bail bond of ₹10,000. Earlier, Kolkata Police had defended the arrest of social media influencer and law student, stating that the posts made by her amounted to 'hate speech' and should not be conflated with freedom of expression. Ms. Panoli's arrest sparked political outrage, with the Opposition BJP accusing the Mamata Banerjee-led government of 'State-sponsored repression'. North Korea's Kim says he'll 'unconditionally support' Russia's war against Ukraine North Korean leader Kim Jong Un told a visiting top Russian official that his country will 'unconditionally support' Russia's war against Ukraine, the North's state media reported on Thursday, the latest sign of expanding cooperation between the two nations. In April, the two countries officially confirmed North Korean troops' deployment to Russia for the first time, saying that soldiers of the two countries were fighting alongside each other to repel a Ukrainian incursion into Russia's Kursk border region. At the time, Russian President Vladimir Putin thanked North Korea's participation in the war and promised not to forget their sacrifices. Evening Wrap will return tomorrow.

Flipkart secures NBFC licence from RBI, to begin lending from own books
Flipkart secures NBFC licence from RBI, to begin lending from own books

Time of India

time3 hours ago

  • Time of India

Flipkart secures NBFC licence from RBI, to begin lending from own books

Ecommerce giant Flipkart has received a non-banking finance company (NBFC) licence from the Reserve Bank of India . Armed with this licence, the Walmart-owned firm can now extend credit from its own books. Responding to ET's queries, a Flipkart spokesperson confirmed the development. After Flipkart entered UPI payments, this is the second major fintech foray from the ecommerce major. In May, Flipkart UPI processed 3.47 million transactions, settling Rs 195 crore. This comes at a time when Flipkart has firmed up its plans to list on Indian stock exchanges. ET reported on April 22 that the company had received a nod from its board of directors to shift its parent entity from Singapore to India. While the new licence will allow Flipkart to lend from its own books, the company is already working with Axis Bank for a credit card product and with other lenders for consumer loans and buy-now-pay-later offerings. Now that Flipkart has its own NBFC, it can bring part of the loan book in-house. News agency Reuters reported the development first. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories 'Lenders are increasingly wanting to work with regulated partners given the regulatory scrutiny in this space. An NBFC licence can enable co-lending partnerships, which can help Flipkart's partners scale up credit disbursals,' said a founder at a fintech lending startup. Flipkart's NBFC push also comes at a time when its rival Amazon is in the process of acquiring Axio, a lending startup, as it looks to expand financial services under Amazon Pay. Its broader fintech ambitions are also playing out through an entity it backs. Bengaluru-based offers UPI payments, digital loans, and credit cards. The ecommerce company was last valued at $37 billion in 2024, when it raised $1 billion from its parent Walmart .

AI-driven search ad spending set to surge to $26 billion by 2029, data shows
AI-driven search ad spending set to surge to $26 billion by 2029, data shows

Time of India

time5 hours ago

  • Time of India

AI-driven search ad spending set to surge to $26 billion by 2029, data shows

HighlightsSpending on AI-powered search advertising in the United States is projected to grow from over $1 billion this year to nearly $26 billion by 2029, driven by the rapid adoption of AI technology and enhanced user targeting strategies. Major search engines such as Alphabet Inc.-owned Google and Microsoft Corporation's Bing are integrating AI capabilities to compete with chatbots, which provide users with direct information, thereby potentially disrupting traditional keyword-based search ad revenues. As AI search tools gain popularity, companies like Chegg are experiencing significant operational changes, including layoffs, as students increasingly prefer AI-powered resources over conventional educational technology platforms. Spending on AI-powered search advertising is poised to surge to nearly $26 billion by 2029 from just over $1 billion this year in the U.S., driven by rapid adoption of the technology and more sophisticated user targeting, data from Emarketer showed on Wednesday. Companies that rely on traditional keyword-based search ads could experience revenue declines due to the growing popularity of AI search ads, which offer greater convenience and engagement for users, according to the research firm. WHY IT'S IMPORTANT Search giants such as Alphabet-owned Google and Microsoft's Bing have added AI capabilities to better compete with chatbots such as OpenAI's ChatGPT and Perplexity AI, which provide users with direct information without requiring to click through multiple results. Apple is exploring the integration of AI-driven search capabilities into its Safari browser, potentially moving away from its longstanding partnership with Google. The report has come as concerns grew about users increasingly turning to the chatbots for conversational search and AI-powered search results could upend business models of some companies. Online education firm Chegg said in May that it would lay off about 248 employees as it looks to cut costs and streamline operations because students are using AI-powered tools including ChatGPT over traditional edtech platforms. QUOTE "Publishers and other sites are feeling the pain from AI search. As they lose out on traffic, we're seeing publishers lean into subscriptions and paid AI licensing deals to bolster revenue," Emarketer analyst Minda Smiley said. GRAPHIC CONTEXT AI search ad spending is expected to constitute nearly 1% of total search ad spending this year and 13.6% by 2029 in the U.S., according to Emarketer. Sectors such as financial services, technology, telecom, and healthcare are embracing AI as they are seeing clear advantages in using the technology to enhance their ad strategies, while the retail industry's adoption is slow, the report said. Google recently announced the expansion of its AI-powered search capabilities into the consumer packaged goods sector through enhancements in Google Shopping.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store