Feb 5: Adani Enterprises has received a set back on its prestigious Carmichael coal, railway and port project following its failure to secure funding from government and institutions. Major news agencies reported that that Adani and Downer EDI Ltd associating with the venture had agreed to cancel all letters of award for mine services and related infrastructure.
The move follows the failure to convince Chinese state lenders and Australian and international banks to back the project. Adani also failed to secure a cheap government loan for Australian $16.5 bn ($13 bn) project.
Gautam Adani, Chairman of Adani Group said in New Delhi the other day that there was intense resistance to the Carmichael project form international NGOs and competitors. The coal mining project was expected to create significant job opportunities within Australia, while bringing energy security to 18,000 villages in India that have no access to electricity.
Despite the opposition to thermal power projects from environmentalists, Adani said that renewable energy cannot provide uninterrupted base load power in India. He said that his objective was to ensure that 300 million citizens who lack access to power need to light up their homes.
Adani Enterprises Ltd (BSE: 512599, NSE: ADANIENT) was trading 0.38% lower at Rs 196.45 in afternoon trade on Monday. The company had reported a net profit of Rs 351 cr in Q3 FY18 as against Rs 340 cr in Q3FY17.
Reuters reported that preliminary agreements were signed between Adani and Downer in 2014 but no actual contracts were signed as part of the deal. The Greenfield mine was acquired by Adani in 2010 with the objective of building Australia’s largest thermal coal mine in the North Galilee Basin 160 km north-west of Clermont in Central Queensland, linked by a new 388 kn standard guage North Galilee Basin Rail Line to two terminals at Abbot Point Port near Bowen.