Adani expects financial closure for petrochemical project in six months
Adani Group expects funding for its greenfield coal to polyvinyl chloride project to be tied up in the next six months, countering a recent local media report that the initiative was stalled. After the financial closure, “full fledged procurement and construction activities at the site will commence," the ports to power conglomerate said in a statement. “We are committed to completing the project in an expeditious manner so as to meet the initial timelines."
Local source reported that the Adani Group had suspended work on a 349 billion-rupee ($4.2 billion) petrochemical project at Mundra. A wholly owned subsidiary of the group’s flagship Adani Enterprises Ltd. is setting up this plant in Gujarat.
The Gautam Adani led conglomerate has been reassessing its capital expenditure plans after a scathing short seller report in January lopped off more than $100 billion from its market price. The group has regained some ground since by repaying the loan to retrieve pledged shares, paring costs and comforting lenders as well as investors.
While the engineering design and other activities are underway at the petrochemical plant in an accelerated mode, "the conglomerate has decided to keep the major equipment procurement and site construction activities on hold" until financing is secured.
Polyvinyl chloride is used to make plastic items from food containers to sewage pipes. India manufactures it using largely imported crude oil and other feedstock.
