NEW DELHI: In response to a damning report by a US-based short seller Hindenburg Research, the Adani Group has suspended development on a Rs 34,900 crore petrochemical project at Mundra in Gujarat as it concentrates on resources to integrate operations and address investor concerns, according to sources, sources said.
The group's flagship Adani Enterprises Ltd had in 2021 incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd for setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone land in Kutch.
But after Hindenburg Research's January 24 report alleging accounting fraud, stock manipulations and other corporate governance lapses chopped off about USD 140 billion from the market value of Gautam Adani's empire, the group is hoping to claw back and calm jittery investors and lenders through a comeback strategy.
The comeback strategy is based on addressing investor concerns around debt by repaying some loans, consolidating operations, and fighting off allegations. The conglomorate has denied all allegations levelled by Hindenburg. As part of this, projects are being re-evaluated on the basis of cashflow and finance available. The projects the group has decided not to pursue for the time being is the 1 million tonne per annum Green PVC project, reliable sources with the development of the matter said.
Adani group has shot off mails to vendors and suppliers to "suspend all activities" on immediate basis. In the mails, seen by PTI, the group has asked them to "suspend all activities of the scope of work and performance of all obligations" for Mundra Petrochem Ltd's Green PVC project "till further notice.
Parliament adjourned till March 20 over Adani and more
