Allegations of fraud made by Hindenburg Research have hit investor confidence around Adani hard, and led to the cancellation of its FPO. The government has also been facing demands for an investigation in the matter, triggering a ruckus in the parliament. But beyond stock markets, the fiasco may also be hitting business operations, as a power utility firm in Uttar Pradesh has cancelled its order for smart meters to Adani.
The Madhyanchal Vidyut Vitran Nigam, one of Uttar Pradesh's four regional discoms, has scrapped a deal for procuring 7.5 million smart meters from Adani. It has cited unavoidable reasons to cancel the order that the port to power conglomerate had successfully bid for. The Purvanchal, Dakshinanchal and Paschimanchal Vidyut Vitran Nigams, combined with MVVNL had floated tenders for 25 million meters worth Rs 25,000 crore.
This means that the fiasco may have just robbed the Adani Group of a Rs 7,500 crore order, in the midst of a turmoil. Now that MVVNL is likely to start a new bidding process, the other three discoms of Uttar Pradesh may follow suit. The power consumers' body of the state have already challenged the bids in the UP Electricity Regulatory Commission.
