Prime projects bagged by various entities of the beleaguered Adani group will go ahead as planned with the ongoing turbulence triggered by the Hindenberg report not having any impact at the operations level.
An Adani Airports spokesperson said, “Navi Mumbai International Airport project is being executed as per scheduled implementation plan and will be operational by the original target date of December 2024, without any delay. Financial closure for it has been fully achieved.” The spokesperson did not, however, respond to a question on the proposed Rs 20,000-crore infusion for modernising the Lucknow and Ahmedabad airports.
Lenders and market watchers pointed out that the current wave of corrections in the valuations of the Adani entities have little or no bearing on their loan repayment abilities considering that they are self-sustaining and profit-making. Some of these projects have achieved full financial closure too.
Ganga Expressway, Navi Mumbai International Airport, redevelopment of Dharavi, power distribution license for Navi Mumbai, Vizhinjam (Kerala) port and Tajpur (West Bengal) deep sea port are some of the big-ticket projects that have been won by Adani entities over the past few years.
While the collective investment for these projects, which are spread over multiple years, are in excess of Rs 50,000 crore, State Bank of India has underwritten the entire debt for two of these projects — Ganga Expressway and Navi Mumbai International Airport.
On Monday, promoters of Adani group companies repaid $1.114 billion before time to release some pledged shares in Adani Ports & SEZ, Adani Green Energy and Adani Transmission, ahead of maturity of September 2024.
Officials at City and Industrial Development Corporation, city planning agency, said they were yet to hear of any delay or halting of the Navi Mumbai International Airport project.
The Rs 5,000-crore (initial investment) Dharavi redevelopment plan by Adani Realty, which aims to rehabilitate 650,000 slum dwellers in seven years, will move ahead as planned. According to sources in the Mumbai Metropolitan Region Development Authority MMRDA, “as of now there is no delay in the project”.
A special purpose vehicle is to be formed by April and the construction work is expected to begin in October for the Dharavi project, as per reports.
“The ongoing situation will have no impact on the present projects and strategic growth of Adani Realty, and we remain committed to undertaking and delivering the same successfully. We remain committed to a successful redevelopment and regeneration of Dharavi,” an Adani Realty spokesperson said.