PFC and REC See No Impact on Loans Provided to Adani Projects

27 Nov 2024

According to an official statement, state-owned power sector lenders Power Finance Corporation Ltd (PFC) and REC Ltd have stated that they do not see any immediate impact on their investments in Adani Group projects.

The statement added that "all on-going projects are secured, and 56% of the projects that it has financed are already operational." The report further states, "The financing of the project depends on the revenue cash flow of the project, so there is no impact on the revenue cash flow. Payment of the company, Adani Group, is on time and the loans are secured, so there is no cause for concern." It also states that for the loans given for the projects under construction, the company is making timely payments.

The report follows the announcement on November 21 by US authorities, who charged Gautam Adani, chairman and founder of the Adani Group, along with seven others, for allegedly bribing government officials in India to secure power supply agreements for a renewable energy project.

Regarding fresh lending to Adani's new projects, the report said standard procedures will be followed by the lenders, which include evaluation of cash flow generation and equity investment.