Coal news and updates

Adani Enterprises Ltd is aiming to start production at its $16 billion integrated mining project in Australia by end of 2020, after facing a four-year delay because of stiff resistance from environmental groups. 

 

In an interview, group chairman Gautam Adani brushed aside concerns about the group’s indebtedness and said it was looking at investment opportunities in sectors such as defence, coal conversions and water. He added that the group continues to explore opportunities in the mining sector as it looks at an integrated “pit-to-plug” strategy encompassing mines, rail and the port sector. 

 

“Infra is a capital intensive business. At group level, our long-term debt to Ebitda (earnings before interest, taxes, depreciation and amortization) is at a comfortable level of 3.25:1. Overall, for infra business, we are robustly placed,” said Adani, 54. 

 

ALSO READ | We aspire to be world leaders with our integrated pit-to-plug strategy: Adani

 

At the end of fiscal 2016, Adani Power Ltd had a consolidated debt of Rs49,130 crore, Adani Ports and Special Economic Zone Ltd Rs19,500 crore and Adani Enterprises Ltd Rs19,298 crore.

 

For the debt, the group carries, the “corresponding value of net fixed asset is Rs1.25 trillion”, said Adani. 

 

The billionaire also said that in a growth economy, even the group’s existing businesses of ports, power and mining remain sunrise sectors. “That being said, we are certainly evaluating other sectors that include coal conversions, defence and water. However, it’s too early to say which of these would be the next sunrise sector for us.” 

 

When asked about the group’s plan in the defence sector, which has recently been opened up to private firms, Adani said that it was in “discussions to enable the Make in India programme but it’s too early to... comment.” He, however, clarified that the group had no plans to build ships for the defence sector.

 

Adani has set a target of 10,000 megawatts (MW) of solar power plants and at least 10,000MW of solar parks by 2020. The group is planning to invest $1 billion in solar manufacturing project in Kutch in Gujarat, besides setting up the world’s largest single-location solar plant in Tamil Nadu.