Adani Power to scrap $850 million coal plant purchase amid Hindenburg allegations

Adani Power's decision to scrap the $850 million coal plant purchase is likely a result of various factors, including the allegations made by Hindenburg Research. In June 2021, Hindenburg published a report that alleged Adani Power was overvaluing its assets and misleading investors about its financial health. The report also alleged that Adani Power was failing to disclose vital information about its operations, including its coal power plant projects.

The allegations by Hindenburg Research were serious and could have significant implications for Adani Power. As a result, it is possible that Adani Power decided to scrap the $850 million coal plant purchase to avoid further scrutiny and potential legal action.

It is worth noting that Adani Power had already been facing challenges related to the coal plant project prior to the Hindenburg allegations. The company had been struggling to secure financing for the project, and it had faced opposition from environmental groups and local communities. The decision to scrap the purchase may also have been influenced by these factors.

Overall, it is likely that the decision by Adani Power to abandon the coal plant project was driven by a combination of factors, including the Hindenburg allegations, financial difficulties, and opposition from environmental and local groups.