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Don’t Invest Public Money in high risk Adani Coal to PVC Plant https://forms.gle/2wmceUSkmecKF1QY7
On June 20, it was reported that Adani Enterprises had secured an in-principle agreement from a SBI led consortium of banks to fund its proposed Coal to PVC plant in Mundra. Such an investment of public money in a company whose financial viability has been deemed suspect is a violation of the trust that crores of people have reposed in these public sector banks

 At a time when Adani Enterprises is overleveraged and is under an ongoing investigation, the reported attempt by public sector banks to raise ₹ 14,500 crore and the remainder by private banks, is a severe undermining of public trust in custodians of public money. According to an assessment carried out last year by CreditSights, a credit assessment unit of the Fitch Group, which points to the group's high indebtedness, over-leveraged operations and debt-driven expansion into highly capital intensive projects in a wide range of new sectors. According to this report, “excessive debt and over-leveraging by the group could have a cascading negative effect on the credit quality of the bond issuing entities within the group and heightens contagion risk in case any entity falls into distress”.

It is important to note that coal based projects became the principal line item in India’s terrifying bad loans problem, contributing to more than ₹ 1.74 lakh crores in NPAs. This Coal to PVC project has the potential to join the long list.

The coal-based manufacturing of PVC is highly environmentally damaging, emitting three times more greenhouse gases than conventional plastic production, exacerbating both the plastic waste and climate crisis. The coal to PVC plant in question, with numerous flue gas and process vent stacks, releases harmful particulate matter leading to various health problems, including respiratory issues and heart diseases.

Why Has the Adani-Hindenburg Issue Become a Matter of National Concern? Arun Kumar https://thewire.in/business/why-has-the-adani-hindenburg-issue-become-a-matter-of-national-concern The corporate members of the expert committee could have exposed much more of the wrongdoings but they have chosen to be formalistic. So, an opportunity to expose and clean up corporate manipulations has been missed.

Though his companies are public, the Indian public shareholding in his companies has been small. So, the Indian public has hardly benefitted from the rapidly growing pie. Even Indian mutual funds’ investment in his companies is small. The debt compared to equity was quite large and has been flagged by financial experts. A high ratio of debt to equity increases the riskiness of the shares. If profits earned are taken as a yardstick of performance, they were low compared to the price of the shares. This is referred to as the price-earning ratio (P/E).

Three important questions arise: first, how did Adani get hold of so many businesses so quickly? Second, how did the valuation of the shares of the Adani Group rise so rapidly? Third, why did the undue rise in the share prices not raise suspicions among the regulatory agencies – SEBI, the Enforcement Directorate, income tax department, etc.? Did political connections coupled with a lack of action, or investigation by the regulators help Adani acquire assets, possibly at low prices?

Adani Power agrees to sign supplementary PPA with Haryana Hitender Rao Mar 02, 2023 0  https://www.hindustantimes.com/cities/chandigarh-news/adani-power-agrees-to-sign-supplementary-ppa-with-haryana-101677691257073.html  The development assumes significance in view of early onset of summer and rise in the demand for electricity. The state had experienced a deficit of 2,570 MW in April 2022 and 1,786 MW in May 2022 due to non-availability of power from APL, Coastal Gujarat Power Ltd and Faridabad Gas Power Plant. The state had to buy costly power at the rates 11.55 per unit in April 2022, ₹8.13 per unit in May 2022 and ₹7.30 per unit in June 2022. ..

The Council of Ministers had on June 27, 2022, approved the supplementary PPA for supply of about 1,096 MW power generated from domestic coal at ₹3.20 per unit (agreed tariff of ₹2.94 plus about 26 paisa). The cost, however, is likely to increase to ₹3.48 per unit. The state will though forego 224 MW power capacity at Haryana periphery.

2022 Redux: Adani Group will make most of Haryana’s long, hot summer https://www.adaniwatch.org/2022_redux_and_a_long_hot_summer_adani_group_will_make_most_of_haryana_s_power_crisis
Ayush Joshi & Paranjoy Guha Thakurta Apr 28, 2023  This summer, Adani Power can officially supply less power to Haryana and get paid more for each unit, despite a Supreme Court judgment which said there is no justification for hiking tariffs.