Adani Entp hits the "Great Reef"

Adani Enterprise is having a really bad run, first with the Australian authorities and consequently, on the Indian bourses. Worry has erupted that the company, which had acquired a coal mine in Australia’s Queensland, with plans to export the coal into India, could not be aborted. The company has already invested some $16 billion and has been working with the authorities to get clearances for the past five years. The idea was the Adani would mine the coal, get it 300kms to Abbot Point and then export it via the sea-route; and that’s where the catch was – the point where the company was to use the sea route was uncomfortably close to the Great Reef Barrier and environmentalists have been crying murder. In fact the banks did not lean money to Adani precisely because they too were worried about the environmental clearances. Well, if this has been in India, given the proximity of the Adani’s to our PM, all clearances would have come in a jiffy. But not so in Australia. Currently, all work has halted on the site and the company says that in these five years, with the project not taking off, it has suffered mighty cost and time escalations which make the project unviable.

The stock is down almost 4.5% currently at Rs.92.75 with an intra day low of Rs.92.25. The 52-week low stands at Rs.77.