Construction halted at Adani's Mundra PVC project over pending financial closure

The Adani Group's French partner TotalEnergies pressed pause on their green hydrogen project over allegations of accounting fraud in the Hindenburg report. Adani also lost smart meter projects in Uttar Pradesh and halted investment on new road projects.

Now site contruction and equipment procurement for its coal-to-PVC project in Mundra are on hold, as financial closure for it is pending.

What has changed now?

• Delay in fulfilment of the conditions for agreements with financial institutions, is expected to stop construction activity for six months.

• But the firm has assured that it is committed to completing work on the project according to the original timeline.

• The clarification came after reports that the Rs 35,000 crore project at Adani Port had been put on hold for businsess consolidation.

What's does the future look like?

• The project is being built by a subsidiary of Adani Enterprises, which had been set up in 2021 for the purpose.

• As of now the port to power conglomerate is focusing on speeding up engineering design and other tasks, till construction and equipment procurement can be restarted.

• Following the Hindenburg Research report, Adani lost $140 billion from its market value, and had to prepay more than $2 billion in loans to address debt concerns.

It did receive an investment of Rs 15,000 crore from an American fund GQG Partners, which helped its stocks bounce back.

But it is still a long way from reaching levels it had scaled by January 2023, when the Hindenburg report emerged.