Adani’s 34,000 crore PVC project in Mundra would be funded by a consortium of PSBs led by SBI. According to a report by The Hindu Businessline (BL), a group of banks led by the State Bank of India (SBI) have agreed to fund a significant portion of the 34,000 crore polyvinyl chloride (PVC) project in Mundra by the Adani Group. The PVC project is expected to reach a financial close by the middle of August with loan support from SBI.
Public sector banks (PSBs) would provide the first finance for the project, covering the majority of the estimated $14,500 crore cost. According to the article, private lenders would provide the remaining funding.
A subsidiary of Adani Enterprises, Mundra Petrochem, is carrying out the project, and it expects to install the facility with an annual capacity of one million tonnes in the first phase at a cost of $2.5 million overall. According to the research, when the first phase is completed by 2025–2026, the capacity will be doubled in the second phase.
The Adani Group’s ambitious ambitions to create a petrochemical cluster at Mundra and Central include the development of a coal-to-PVC facility, which is a significant component. The organization wants to dominate the market and hold a sizable portion of it.
Currently, just 16% of domestic lenders, including government and commercial banks, are exposed to the organization. The study also said that more than one-third of the group’s loans were obtained through bonds from international financial institutions.
In order to raise money, the port-to-power company is looking to Indian banks after suffering a serious setback as a result of the accusations contained in the Hindenburg Research study. The findings seriously harmed the group’s short-term expansion goals and its aim to raise 20,000 crore through a follow-on public offering.
After the US-based short-seller publicized claims of stock market manipulation and other mistakes against the firm in January, the conglomerate saw its market value drop by nearly 12 lakh crore. Since then, the Gautam Adani-led organization has denied all wrongdoing.
