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“The project will be financed through the company’s internal accruals and capital management plan. We have withdrawn our request for financing from the DFC,” Adani Ports and Special Economic Zone said in a regulatory filing recently. The company announced that the project will be funded through its internal accruals and capital management plan.
Also, Adani Ports and Special Economic Zone said its CWIT project in Sri Lanka is progressing as planned, with commissioning expected by early next year.
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“With reference to the captioned subject matter, we would like to inform that the CWIT project in Sri Lanka is progressing well and is on track for commissioning by early next year,” it said.
This comes after the US Department of Justice charged Adani Group Founder and Chairman Gautam Adani and seven others over allegedly conspiring to pay $265 million in bribes to Indian officials to secure lucrative solar power supply contracts that were expected to yield $2 billion in profits over 20 years.
The Adani Group has denied all charges as baseless and vowed to pursue all possible legal recourse.
The US IDF had in November last year agreed to provide a $553-million loan to support the development, construction, and operation of a deep-water container terminal called the Colombo West International Terminal at the Port of Colombo in Sri Lanka.
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The CWIT is being developed by a consortium comprising Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA). DFC financing was part of the US government’s broader efforts to counter China’s growing influence in the region and was seen as an endorsement of Adani’s ability to develop world-class infrastructure.
However, the loan process stalled after the DFC wanted the agreement between Adani and the SLPA to be amended to align with their conditions, which then reviewed by Sri Lanka’s attorney general. As the project is nearing completion, Adani Ports, which holds 51% of the venture, chose to proceed with the project without funding from the DFC.
Shares of Adani Ports and Special Economic Zone Ltd ended at ₹1,233, down by ₹15.60, or 1.25%, on the BSE.
(Edited by : Shoma Bhattacharjee)
