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LIC’s debt exposure in Adani Group companies drops slightly to Rs 6,183 crore as of March 5 – Mintpaisa

LIC’s debt exposure in Adani Group companies fell slightly to Rs 6,183 crore as of March 5 from Rs 6,347 crore as of December 31, 2022, Parliament informed on Monday. In a written response to the Lok Sabha, Finance Minister Nirmala Sitharaman said: “The Life Insurance Corporation of India (LIC) has advised that its debt exposure to Adani Group of Companies is Rs 6,347.32 crore and Rs 6,182.64 crore, as of Dec. 31, 2022, and Mar. 5, 2023, respectively”.

LIC has a debt of Rs 5,388.60 in Adani Ports and SEZ as of March 5. Exposure in Adani Power (Mundra) was Rs 266 crore, Adani Power Maharashtra Ltd – Phase I (Rs 81.60 crore), Adani Power Maharashtra Ltd – Phase III (Rs 254.87 crore), Raigarh Energy Generation Ltd ( Rs 45 crore) and Raipur Energen Ltd (Rs 145.67 crore), according to the response.

Sitharaman said five public sector general insurance companies have informed that they are not exposed to loans/credits from the Adani group of companies.

“Public sector banks have advised that loans are sanctioned after assessment of project viability, prospective cash flows, risk factors and availability of adequate collateral and repayment of loans is secured by revenue generated by the project and not by the market capitalization of the company,” the minister said.

US-based short seller Hindenburg in January launched a litany of allegations, including fraudulent trading and stock price manipulation, against the Adani Group, following which the shares of the companies in the group were beaten.

The group dismissed the accusations as lies, saying it was complying with all laws and disclosure requirements.


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