After canceling a mega share sale, India’s Adani group has now abandoned its plans to buy a coal plant in India for $850 million.
It has decided not to pursue the deal with Chhattisgarh-based DB Power after a deadline to finalize it expired on Feb. 15, Bloomberg reported.
The Adani group was expected to step back on spending following a stock drubbing triggered by a report that accused the company of market misdemeanor. The Jan. 24 report by the US-based Hindenburg Research has so far eroded over $120 billion in Adani’s market cap.
The group has received another jolt with state-run Indian Oil Corporation (IOC) disputing its claim of another deal, involving Andhra Pradesh’s Gangavaram port which was to be used to unload imported liquified petroleum gas.
In an unusual move on Feb. 15, IOC took to Twitter to dismiss its claim, made during its recent quarterly earnings announcement, that Adani Ports had signed a “take-or-pay liability” deal with the oil marketing firm.
A take-or-pay deal makes it mandatory for buyers to pay up even if they later decide against using the goods or facilities.
Earlier this month, French firm TotalEnergies halted its plan to join the Indian firm’s $50 billion bet on hydrogen. Adani is also struggling with projects involving foreign governments. Bangladesh’s state-run power firm, for instance, is reportedly seeking a revision of a deal with Adani Power.