The Adani Group Will Review Plans Of PVC And Caustic Soda Greenfield Project Amid Growing Corporate Government Concerns

Plans For Building Mundra Plant Are To Be Reviewed By Adani

The plan to build a coal-to-polyvinyl chloride (PVC) plant in Mundra, Gujarat, will be reviewed by Adani Enterprises (AEL). The group will not be making any major bids for road projects either. Additionally, it will also mediate some accelerations that were budgeted in the earlier capex plans though it will persist with its core infrastructure businesses investment plans.

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As per Group CFO at Adani Group, Jugeshinder Singh, from coal to PVC is among their new commitments, and they will review that commitment post-settlement of this unstable time. For now, they will not make any commitments for new projects. But the committed projects are on track per scheduled.

The company had plans to construct a 2-million-tonne-per-annum coal-to-PVC plant in Mundra, Gujarat, which cost USD 4 billion in investment. The project was anticipated to yield PVC grades like suspension PVC (resin), chlorinated PVC (C-PVC) and emulsion PVC (paste).

About 3.1 million tonnes per year in feedstock coal required for the project will be essentiallysourced from Australia, Russia and other nations. the project was expected to be on stream in about four years after acquiring all the required clearances.

Further, AEL will be at bay and not pitch for any road projects in the fourth quarter, when various HAM and EPC projects are anticipated to be granted. The company will hold back on any new commitments on capex till the volatility period settles; however, they plan to set up copper plants and data centres, etc.

Thus, their investments in the core infrastructure sector, which comprise energy and utilities like green hydrogen, transport and logistics portfolio, will go on as planned. But concerning the present volatility, they will mediate some accelerations they budgeted in the capex profile and will continue with business-based capex as usual.

About the PVC Plant

The coal-to-polyvinyl plant expected to be built by the Adani Group in Mundra in Gujarat is an investment of a total of INR 19,000 crore. The facility will be expected to be a part of the Adani Group’s ambitions for establishing a petrochemical cluster in Mundra.

The plant will have the capacity of producing goods such as emulsion PVC, suspension PVC, and chlorinated PVC at a pace of 2,000 kilotons per year (KTPA). A total of two million metric tons of PVC is assessed to be produced at Mundra. The project is anticipated to be running by 2024, by which the initial phase of the 2,000 KTPA project will get completed.

The primary raw material sources for the project include limestone, coal tar, salt, and potassium chloride. The group joined the petrochemical industry in 2021 and is presently examining ways for building a petrochemical cluster in Mundra. The project, which was first proposed would turn two million metric tons of coal into PVC, will be constructed in phases.

About ADANI Group

The Adani Group is an Indian organization that is diversified with a total income of USD 13 billion and a market cap of USD 75 billion (as of 17th Feb 2021), which includes six publicly traded companies. The company is headquartered in Ahmedabad, Gujarat, India.

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After years of business, the company has placed itself as a market leader in its transport logistics and energy utility portfolio businesses that are concentrated on India's large-scale infrastructure development with O & M procedures benchmarked to international standards with crucial businesses over Resources -Coal mining and trading; Energy – Gas (LNG, City Gas), Logistics – airports, shipping, rail and airport terminals; thermal power generation, renewables (Solar & wind) and transmission energy infrastructure, city gas distribution; Agro commodities and ancillary industries, Real estate.

According to Procurement Resource, the following article states that the company will review its plans to construct the PVC And Caustic Soda Greenfield Project in Gujrat, and the company won't be making any significant bids for road projects either.

From coal to PVC is among their new commitments, and the company will review that commitment post-settlement of this unstable time and not make any new commitments regarding new projects. However, the plans already in motion in various sectors will be carried out as planned.