New Delhi: There has been a lot of discussion recently on LIC’s loan and investment in Adani Group. The reason for this is that Adani Group shares fell heavily for more than a month after a report by American short selling firm Hindenburg Research on January 24. Finance Minister Nirmala Sitharaman said on Monday that during the last three months, LIC loans given to Adani Group companies have declined. Sitharaman told the Lok Sabha in a written reply that the debt exposure of LIC to Adani group companies was Rs 6,347 crore as on December 31, 2022, which has come down to Rs 6,183 crore as on March 5.
The Finance Minister informed that Adani Ports and Special Economic Zone (APSEZ) has the highest exposure of Rs 5,388.60 crore. Similarly, Rs 266 crore near Adani Power Mundra, Rs 81.60 crore near Adani Power Maharashtra Ltd Phase-1 (Adani Power Maharashtra Ltd – Phase I), Adani Power Maharashtra Ltd Phase-3 (Adani Power Maharashtra Ltd – Phase III) has an exposure of Rs 254.87 crore, Raipur Energen Limited has an exposure of Rs 145.67 crore and Raigarh Energy Generation Limited has an exposure of Rs 45 crore.
Sitharaman also said that five government general insurance companies have not given loans to any of the Adani Group companies.
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The Finance Minister said that according to public sector banks, loans to Adani Group have been issued keeping in view factors like viability, cash flow estimation, risk etc. of the projects. Due to the fall in Adani Group’s shares, the value of LIC’s investment in these companies had gone negative. This raised questions on LIC’s investment. However, the group’s shares have gained momentum in the recent past. Due to this, the investment value of LIC has once again gone up. LIC has investments in seven listed companies of Adani Group.
Source: navbharattimes.indiatimes.com
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