Adani Group said, Mundra PVC project work not stopped, money not received from financial institutions

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Ahmedabad : Adani Group on Monday said that the green PVC project of Mundra Petrochemicals Limited (MPL) is pending financial closure with financial institutions and the construction activities of the project are stuck. Adani Group spokesperson said that the group is fully committed to complete the project work within the stipulated time frame. Media reports on Sunday quoted sources as saying that the Adani Group has stopped work on its Rs 34,900-crore petrochemical project at Mundra in Gujarat after American short seller Hindenburg Research in a report in January this year said Adani Group was accused of rigging shares and accounting fraud.

Financial closure pending with financial institutions

Adani Enterprises Limited (AEL), the flagship company of the Adani Group, has agreed to set up a greenfield coal-to-PVC plant at the Adani Ports and Special Economic Zone (MPSEZ) in Kutch district of Gujarat by the year 2021, reported news agency ANI. A wholly owned subsidiary Mundra Petrochem Limited was incorporated.

Money stuck with financial institutions

An Adani Group spokesperson said in a press release that due to recent market developments, the management has decided to continue with other activities, including engineering design and financial closure, in an accelerated mode. He said that the financial closure of the Green PVC project of M/s Mundra Petrochemicals Ltd. is pending with the financial institutions and is under active consideration.

delayed work in getting money

Pending financial closure, the spokesperson said, it has been decided to halt major equipment procurement and site construction activities. We are hopeful of achieving financial closure for the project in the next six months, following which full-fledged procurement and construction activities will begin at the site, he said. He said that we are committed to speed up the completion of the project so that the work can be completed within the original deadline.

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