Adani Group to get US fund for Sri Lanka project
Adani Group is building a deep water container terminal in Colombo Port, Sri Lanka. Adani Group may get a boost from this deal. This will increase investor confidence in Adani Group, which had plummeted due to Hindenburg Research report.
There is finally some good news for businessman Gautam Adani, who had landed in trouble due to a report by Hindenburg Research.
The International Development Finance Corporation (DFC) of the US government is going to provide them a fund of Rs 4,600 crore. This fund is for a project in Sri Lanka.
Adani Group is building a deep water container terminal in Colombo Port, Sri Lanka. Adani Group may get a boost from this deal. This will increase investor confidence in Adani Group, which had plummeted due to Hindenburg Research report.
In this report, Adani Group was accused of accounting fraud, tampering with stock prices and irregularities related to corporate governance. Although Adani Group had denied these allegations, due to this there has been a huge fall in the shares of the group.
Adani Port and Special Economic Zone Limited has 51 percent stake in West Terminal Container. This company is India's largest private port operator.
This is the first time that the US government is funding any project of Adani Group through any of its agencies. The shares of Adani Port were trading at Rs 807.25 with a rise of 1.26 percent.
Colombo Port is the largest and busiest transshipment port in the Indian Ocean. This will also help America in reducing China's growing dominance in the region.
China has invested heavily in Sri Lanka's economy. It also includes the Colombo and Hambantota Ports and the Colombo Port City Project.
Experts say that US government funding can act as a booster for Adani Group. DFC is a development finance agency of the US government which was started during the tenure of the Trump government. Its purpose is to help developing countries along with achieving America's foreign policy goals.
Although it struggled during the pandemic, it has helped America a lot in recent years. Especially it has been successful to a great extent in countering China's Belt and Road Initiative. China has invested $2.2 billion in Sri Lanka. US officials say this is part of China's debt trap diplomacy.