India’s Adani halts Mundra PVC project construction to secure financing
MUMBAI (ICIS)–India’s Adani Group has temporarily halted construction of its Rs349bn ($4.2bn) greenfield 2m tonne/year polyvinyl chloride (PVC) plant in Mundra as it works to secure project funding in the next six months.
The Indian conglomerate, nonetheless, intends to meet original timelines for completion, its listed unit Adani Enterprises Ltd (AEL) said in a disclosure to the Bombay Stock Exchange on 21 March.
Building the project in the western Gujarat state is expected to take four years, with commissioning targeted by 2025-2026.
“The financial closure of the green PVC project is pending with the financial institutions, and it is in their active consideration,” AEL said.
“Due to recent market developments, the management has decided to continue with the engineering design and other activities including financial closure in an accelerated mode,” the company said.
“Pending the above, it has been decided to keep the major equipment procurement and site construction activities on hold,” it added, confirming media reports early in the week that work on the project was halted.
Construction will resume once funding is secured in the next six months, it said.
“We are committed to completing the project in an expeditious manner so as to meet the original timelines,” AEL said.
It was not clear at the time of writing on how far along project construction has gone before the work suspension.
Adani Group, which has various listed subsidiaries, has lost more than $145bn in market capitalisation in a month after US-based investment firm Hindenburg Research released a report on 24 January accusing the conglomerate of stock manipulation and improper use of tax havens.
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