Gautam Adani backing out of Mundra Petrochemicals project, another blow from Hindenburg report!

Adani Group Pulls Back On Petrochemical Project: Two months have passed since the Hindenburg report came on Gautam Adni’s company. The short selling firm had made many allegations including fraud on the Adani group, after which there has been a huge loss in their property. It has been said in the report that the Adani group has incurred a loss of $125 billion since January.

Now Gautam Adani is taking a step back from his ambitious project Mundra Petrochemicals. According to a Bloomberg report, the Adani group is backing away from petrochemicals and is unlikely to go ahead with a $4 billion greenfield coal-to-polyvinyl chloride project at Mundra in western India.

Adani can withdraw from these plans as well

The report said that the Adani group is also scaling back on ambitions to move ahead in aluminium, steel and road projects. It is further said that Gautam Adani will now concentrate on the main projects. In this, we will focus on power generation, port and green energy. According to the Bloomberg report, Adani Group has a big change from 2022.

What is Adani Group’s Mundra Petrochemicals Project?

Adani Enterprises incorporated a wholly owned subsidiary, Mundra Petrochem Limited, to set up a greenfield coal-to-PVC plant at the Adani Ports and Special Economic Zone in Kutch district of Gujarat. The plant was to have a poly-vinyl-chloride production capacity of 2,000 kilotons per year, requiring 3.1 million tonnes of coal per year, which was to be imported from Australia, Russia and other countries.

Why Adani Group is withdrawing from Mundra Petrochemicals

It has been said in the report that since the arrival of the Hindenburg report, it has had a wide impact on the group. For this reason its investors are scared of losses. Due to this the group has put many projects on hold. Out of this, Mundra Petrochemicals has pulled back from the project.

Let us tell you that PTI had expressed the possibility of withdrawing from this project a few days ago, after which the Adani group said that there is no plan to stop it and the Adani group said that it expects to start greenfield coal in the next six months. Funds will be arranged for the two-polyvinyl chloride project.

read this also

Vedanta Crisis: Troubles of Vedanta stuck in debt crisis, this new challenge came in front of Anil Agarwal