Adani Grp suspends work on *35k cr petchem project

New Delhi: Adani Group has suspended work on a Rs 34,900 crore petrochemical project at Mundra in Gujarat as it focuses on resources to consolidate operations and address investor concerns following a damning report by a US-based short seller, sources said.

The group's flagship Ada- ni Enterprises Ltd (AEL) had in 2021 incorporated a wholly- owned subsidiary, Mundra Petrochemfor setting up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in Kutch district of Gujarat.

But after the Hindenburg report, the group is hoping to claw back and calm jittery in- vestors 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.

As part of this, projects are being re-evaluated based on cashflow and finance available. And of the projects the group has decided not to pursue for the time being is the 1 million tonne per an- num Green PVC project, two sources with knowledge of the matter said..

The 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." This is the following "unforeseen scenario". The management, it said, was "re-evaluating various project/s being implemented at group level in different business verticals.