Adani Group rejects US funding for a port project in Sri Lanka

The business said that the US International Development Finance Corporation (DFC) has dropped its 2023 financing request.

The group run by billionaire Gautam Adani announced on Tuesday that it will finance a port project in Sri Lanka using its own funds rather than looking to the US for support.

Adani Ports and SEZ Ltd. stated in an exchange statement late on Tuesday that the project "is on track for commissioning by early next year" and that it will be financed by "internal accruals," in accordance with its capital management plan.

According to the corporation, their "request for financing from the US International Development Finance Corporation (DFC)" for 2023 has been withdrawn.In November of last year, the US International Development Finance Corp agreed to lend $553 million for the Colombo West International Terminal (CWIT), a deep-water container terminal at Sri Lanka's Port of Colombo.

Adani Ports, the Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA) are working together to build the CWIT.

After the DFC requested that the agreement between Adani and the SLPA be changed to meet their requirements, the loan process came to a standstill. The attorney general of Sri Lanka subsequently reviewed the request.

Recently, the US government declared that it was "actively assessing the ramifications" of the accusations of bribery against the executives of the Adani business. The Adani Group has dismissed all of the accusations as unfounded.

Obstacle of power

According to reports, the Adani group is asking the Center for more concessions for its Jharkhand power unit, which is struggling with outstanding debts from Bangladesh.

Adani Power was given permission by the power ministry in August to sell electricity produced in India by the coal-fired project. However, Bloomberg claims that the fact that it is located in a designated SEZ is impeding such a transaction. Power generated would be regarded as imported and subject to taxation unless the minister of commerce granted an exemption.

Adani is requesting that the customs charge on the imported coal used in the 1.6-gigawatt facility be waived. Adani wouldn't be able to sell electricity in India if these concessions weren't made.