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A consortium of banks led by the State Bank of India would finance nearly half of Adani Group’s Rs 34,000 crore polyvinyl chloride (PVC) project in Mundra. The consortium’s Rs 14,500 crore investment would be funded in part by public-sector banks and in part by private lenders. The Adani SBI project is constructing a coal-to-PVC facility in Mundra, a town in Gujarat’s western Kutch area, by an Adani subsidiary named Mundra Petrochem.
The facility is projected to have a capacity of one million tonnes. It will commence operations in 2025 or 2026 as part of the Adani Group’s ambitions to create a petrochemical cluster in the town.
The Adani SBI is funding first-half of the project
With Adani SBI loan backing, the PVC project was expected to be completed by the middle of August. The first phase will be funded by public sector banks, which would cover the majority of the 14500 crore tab. Private lenders will fund the balance. Mundra Petrochem, an Adani Enterprises affiliate, is carrying out the project, which seeks to build a facility with an annual capacity of one million tonnes in the first phase for a total cost of $2.5 million.
After the first phase is completed in 2025-26, the goal is to double the capacity in the second phase. The Adani Group’s coal-to-PVC project is a key component of the company’s ambitious aspirations to build a petrochemical cluster in Mundra and Central. The firm intends to be a dominant player in the category, with a large market share. Domestic lenders, including government and commercial banks, now have only 16% exposure to the business.
The Adani SBI funding will help to build a petrochemical cluster in Mundra
The consortium’s Rs 14,500 crore investment would be funded in part by public-sector banks and in part by private lenders. The Adani SBI funds will help support the construction of a petrochemical cluster in Mundra, with the PVC facility planned to have a capacity of one million tonnes and begin operations in 2025 or 2026. Polyvinyl chloride, a low-cost and long-lasting plastic polymer, is used in pipelines, electrical insulation, clothes, and other sectors.
Despite the hurdles, the business hopes to complete the project’s financial close within the next six months, after which full-fledged procurement and construction operations at the site will restart. During the company’s annual general meeting, Gautam Adani expressed hope about Adani Enterprises’ future trajectory. He emphasised the business’s strong balance sheets and stated his goal of making its logistics branch the most lucrative port company in the world by the beginning of the next decade.
Gautam Adani expresses optimism on the Adani SBI funding
During the annual general meeting, Gautam Adani expressed hope about Adani Enterprises’ future trajectory with the Adani SBI funding project. He emphasised the business’s strong balance sheets and stated his goal of making its logistics branch the most lucrative port company in the world by the beginning of the next decade. He described the Hindenburg study as a “combination of discredited allegations and targeted misinformation.”
The story was a calculated and intentional attempt to harm his reputation. Gautam Adani said he expects India to add a trillion dollars to GDP every 18 months over the next decade, validating India’s development trajectory to become a $25-30 trillion economy by 2050. By 2050, India’s stock market value will have risen to more than $40 trillion.
Key projects underway
Gautam Adani listed the Adani Group’s significant projects that are currently ongoing. He mentioned the Navi Mumbai Airport and the copper smelter. According to him, the goal is to maintain their aim of 45 GW renewable energy capacity by 2030, which contributed to 50% of Adani Enterprises’ FY23 EBITDA. Gautam Adani said the Adani Group would be crucial in India’s net zero path. The Adani Group continues attracting global investment partners that share their long-term strategy of developing and running world-class assets.
Despite turbulent market conditions, the Group successfully finalised a USD1.87 billion secondary deal with GQG partners in March 2023, said Gautam Adani. The chairman of Adani Group also acknowledged the conglomerate’s cooperation with GQG. Despite the market’s current volatility, the worldwide corporation got into an agreement with Adani Group. Mundra Petrochem Ltd., an Adani Group firm, because of the Adani SBI funding project will get Rs. 14,500 crores in finance from a consortium for its coal-to-polyvinyl Chloride (PVC) project.
This project would be built in Gujarat’s Mundra Special Economic Zone (SEZ) for Rs. 34,000 crores.
