Ahmedabad (Gujarat) [India], March 20 : The financial closure of the Green PVC project of Mundra Petrochemicals Limited ( MPL) is pending with the financial institutions and the site construction activities are on hold, an Ad Group spokesperson said on Monday and noted that the conglomerate is committed to completing the project in an expeditious manner to meet the original timelines.
Media reports had on Sunday, citing unnamed sources, said that the Ad Group has suspended work on a Rs 34,900 crore petrochemical project at Mundra in Gujarat as part of its business consolidation after the US short-seller Hindenburg Research alleged stock mpulation and accounting fraud in January this year.
The Ad group's flagship Ad Enterprises Ltd (AEL) had in 2021 incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd for setting up a greenfield coal-to-PVC plant at Ad Ports and Special Economic Zone (APSEZ) in the Kutch district of Gujarat.
In a press statement, the spokesperson said that due to recent market developments, the management has decided to continue with the Engineering design and other activities including financial closure in an accelerated mode.
It said financial closure of the Green PVC project of M/S Mundra Petrochemicals Limited ( MPL) is pending with the financial institutions and it is in their active consideration.
"Pending the above it has been decided to keep the major equipment procurement and site construction activities on hold. We are hopeful to obtain financial closure for the project in next six months post which full-fledged procurement and construction activities at site will commence. We are committed to completing the project in an expeditious manner so as to meet the original timelines," the spokesperson added.
The Ad Group had attacked Hindenburg Research as "an unethical short seller" and stated that the report by the New York-based entity was "nothing but a lie". The continued sell-offs in the group's stocks led its flagship firm, Ad Enterprises Limited, to cancel a fully subscribed Rs 20,000 crore follow-on public offer.
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