Adani Group hopes to raise funds for its greenfield coal-to-polyvinyl chloride project in the next six months, contradicting a recent local media report that the initiative was stalled.
The port-to-power group said in a statement on Monday that, following financial closing, “full procurement and construction activities will commence at the site.” Original timeline.”
Local news wire, the Press Trust of India, reported on Sunday that the Adani group has halted work on its 349 billion rupees ($4.2 billion) petrochemical project in Mundra. A wholly owned subsidiary of group flagship Adani Enterprises Limited is setting up the plant in Gujarat.
The Gautam Adani-led conglomerate is re-evaluating its capex plans after a serious short seller report in January cut over $100 billion off its market value. The group has since gained some ground by reclaiming pledged shares, reducing costs and repaying loans to reassure lenders as well as investors.
While engineering design and other activities are underway “in accelerated mode” at the petrochemical plant, the group has “decided to put major equipment procurement and site construction activities on hold” until funding is secured.
Polyvinyl chloride is used to make plastic items ranging from food containers to sewage pipes. India largely manufactures it using imported crude oil and other feedstock.
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