Adani Enterprises (AEL) is reconsidering its plans to construct a coal-to-polyvinyl chloride (PVC) plant in Mundra, Gujarat. The beleaguered organisation will also not make any significant bids for road projects. Furthermore, it will moderate certain accelerations budgeted in earlier capex plans while continuing to invest in its core infrastructure businesses.
In relation to the coal to PVC, that is one of our new commitments, and we will review that commitment post-settlement of this volatility period. The company will not be making any new project commitments for the time being. Committed projects are proceeding as planned.
The company had planned to invest $4 billion in a 2-million-tonne-per-year coal-to-PVC plant in Mundra, Gujarat. According to AEL’s submission to the Ministry of Environment, Forests, and Climate Change in 2021, the project was expected to produce PVC grades such as suspension PVC (resin), chlorinated PVC (C-PVC), and emulsion PVC (paste).
The project’s feedstock coal will be sourced primarily from Australia, Russia, and other countries, it said, adding that it expected the project to be operational within four years of receiving all necessary approvals.
AEL will also not aggressively bid on road projects in the fourth quarter, when a number of HAM and EPC projects are expected to be awarded. AEL will also moderate certain accelerations budgeted in earlier capex plans, but will stick to its core infrastructure investment plans. With the recent developments there are a couple of measures company will take just to respond to the market volatility.
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