Adani Group halts Rs 34,900 crore petrochemical project

20 Mar 2023 , 09:45 AM

Sources have revealed that the Adani Group has halted the progress of a petrochemical venture valued at Rs 34,900 crore in Mundra, Gujarat.

It can be assumed that the reason for suspending the petrochemical project in Mundra, Gujarat, is related to the Adani Group’s efforts to address investor concerns and consolidate its operations, following a negative report by a US-based short seller.

Last year, Adani Enterprises Ltd (AEL) established a new subsidiary called Mundra Petrochem Ltd to construct a coal-to-polyvinyl chloride (PVC) plant on Adani Ports and Special Economic Zone (APSEZ) land in Kutch district of Gujarat.

The strategy for making a comeback focuses on dealing with debt-related concerns of investors by paying off some loans, consolidating operations, and refuting accusations.

According to two sources familiar with the matter, the Adani Group has put on hold the 1 million tonnes per annum Green PVC project, among other projects.

The Adani Group has instructed its employees to halt all activities related to the Mundra Petrochem Ltd.’s Green PVC project until further notice, as per sources familiar with the matter.

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