Adani Group Commits 70% of Its Investments to Renewable Energy Initiatives

Adani Group plans to allocate over 70% of its future investments toward sustainable energy projects. These projects include renewable energy generation, green hydrogen production, and the development of green energy transmission infrastructure.

A significant endeavor in this direction is the establishment of the largest renewable energy park globally in Khavda, Gujarat, covering an area of more than 530 square kilometers.

The group is set to channel USD 14 billion (approximately Rs 1.2 lakh crore) in the fiscal year 2024-25 through its 11 public companies towards enhancing India’s infrastructure. This figure represents a 40% increase compared to the USD 10 billion investment made in the fiscal year 2023-24.

Adani, India’s premier infrastructure conglomerate known for projects like the Navi Mumbai Airport, Ganga Expressway, Khavda’s renewable park, and Mundra Port, has pledged an investment of USD 100 billion over the next 7 to 10 years. This substantial investment aims to revolutionize India’s energy and transportation sectors significantly. A significant portion of this investment will be directed toward the expansion of its rapidly growing airports and ports businesses.

The group operates 8 airports, including the forthcoming Navi Mumbai airport, and 14 domestic ports. It seeks to enhance its footprint in these domains further.

In the last quarter of December, Adani reported an unprecedented EBITDA increase of 63.6% year-over-year, with its annual EBITDA reaching a record USD 9.5 billion (Rs 78,823 crore) for the calendar year 2023, thanks to prior years’ investments.

By the end of September, the net debt to EBITDA ratio stood at 2.5x, with expectations of a reduction by the fiscal year-end 2023-24, propelled by strong growth. This reduction is anticipated to lay the groundwork for significant expansion in the years ahead, according to a source.

In a February media release, the group highlighted its increasing cash flows and solid credit standing as foundational for its unparalleled commitment to ‘Green Investment.’

Content Credit: DD News