Adani-Hindenburg fallout: Orient Cement terminates MoU with Adani Power Maharashtra

Adani Group News: Orient Cement has informed that the Mou with Adani Power Maharashtra Limited (APML) has been terminated, according to a Zee Business channel report. It said that the Adani Group firm wasn't able to obtain the required clearances to go ahead.

Earlier in September 2021, Orient Cement had signed an agreement with APML for 'facilitating bona fide use of land identified for exploring the possibility of establishing a cement grinding unit (CGU) at Tiroda (in Maharashtra)'.

Orient Cement in a regulatory filing informed that APML has requested the company to not to pursue this venture further as they are not able to obtain the required MIDC clearances for sub-leasing the parcel of land required for the CGU, due to some legal issues.

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"Also, the timelines as agreed upon as per MoU have crossed," the filing noted.

On Thursday, Adani Power shares closed trading 5 per cent lower at Rs 154.35 while Orient Cement shares closed 1.25 per cent higher at Rs 118.80 apiece.

Meanwhile, Adani Enterprises has decided to review its plans to build a coal-to-polyvinyl chloride (PVC) plant in Mundra, Gujarat.

Adani Enterprises had planned to build a 2-million-tonne-per-annum coal-to-PVC plant in Mundra with an investment of Rs 32,000 crore. The project was expected to produce PVC grades such as suspension PVC (resin), chlorinated PVC (C-PVC) and emulsion PVC (paste).

Notably, the Adani Group led by Gautam Adani has been engulfed in crisis since US short-seller Hindenburg Research published a report on January 24, accusing the Ahmedabad-based conglomerate of stock manipulation and accounting fraud. It also raised concerns about high levels of debt and excessive valuations.

The Adani Group, however, denied the allegations, saying the short-seller's narrative of stock manipulation has 'no basis' and stems from an ignorance of Indian law.

Shares of 10 Adani Group's listed companies have tanked between 20 to and 77 per cent since the report was published.

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