Adani Group expects funds for its petrochemical project at Mundra in Gujarat to be tied up in the next six months, refuting media reports that it has stalled the initiative. “The financial closure of the Green PVC project of M/S Mundra Petrochemicals Limited (MPL) is pending with the financial institutions and it is in their active consideration,” said a spokesperson from Adani Group. The Group’s flagship Adani Enterprises Ltd (AEL) had in 2021 incorporated a Rs 34,900 crore wholly-owned subsidiary Mundra Petrochem Ltd for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in Kutch district of Gujarat. Media reports yesterday suggested that the Group has stalled the project as a fallout of the Hindenburg research report.
The Adani Group spokesperson said that the company has decided to keep the major equipment procurement and site construction activities on hold. “We are hopeful to obtain financial closure for the project in next six months post which full-fledged procurement and construction activities at site will commence. We are committed to completing the project in an expeditious manner so as to meet the original timelines,” the spokesperson added.
Earlier Monday, Adani Group stocks fell with Adani Enterprises shares falling 3.84 per cent to Rs 1,805.10 apiece after the reports of the suspension of the project. According to a PTI report, the Group had sent emails to vendors and suppliers and asked them to ‘suspend all activities of the scope of work and performance of all obligations’ for Mindra Petrochem Ltd’s Green PVC project ‘till further notice’.
Hindenburg Research had, on January 24, accused the Adani Group of stock manipulation and fraud and the conglomerate’s market capitalisation fell over Rs 10 lakh crore in just a few days of the report. Gautam Adani-led group had, however, refuted all charges and is working on a comeback strategy which includes re-evaluation of projects based on cashflow and finance available.