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LIC's debt exposure in Adani group cos dips marginally to ₹6,183 cr as of March 5

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LIC's debt exposure in Adani group cos dips marginally to ₹6,183 cr as of March 5
Business1 min read
LIC's debt exposure in Adani group companies fell marginally to Rs 6,183 crore as of March 5 from Rs 6,347 crore as of December 31, 2022, Parliament was informed on Monday. In a written reply to the Lok Sabha, Finance Minister Nirmala Sitharaman said, "The Life Insurance Corporation of India (LIC) has informed that its debt exposure to Adani Group of Companies, was Rs 6,347.32 crore and Rs 6,182.64 crore, as on December 31, 2022, and March 5, 2023, respectively".

LIC has a debt exposure of Rs 5,388.60 in Adani Ports and SEZ as of March 5. The 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), as per the reply.

Sitharaman said five public sector general insurance companies have informed that they do not have loan/credit exposure to the Adani Group of Companies.

"Public Sector Banks have informed that loans are sanctioned after assessing the viability of projects, prospective cash flows, risk factors and availability of adequate security and repayment of loans are ensured by the revenue generated by the project and not by the market capitalisation of the company," the minister said.

US-based short seller Hindenburg in January made a litany of allegations, including fraudulent transactions and share-price manipulation, against the Adani group, following which shares of group companies had taken a beating.

The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

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