The Adani group, which is in the process of acquiring several large infrastructure assets, has put a pause on some deals which include a potential investment in the Krishnapatnam and Dighi ports and a stake buy in cold chain logistics firm Snowman Logistics. The group is also expected to delay the takeover of Guwahati and Jaipur airports which the group successfully bid for last year. A long-awaited transfer of solar power assets from the Essel group to Adani’s renewable energy arm is also pending.
What this means
With Covid putting in unprecedented pressure on the economy and changing the dynamics of the existing order, the relevance of earlier terms at which these deals were signed have changed and the net present value calculations that decided deal terms have also changed. Adani Group obviously has become cautious with the deals and are reconsidering the terms. With the economy contracting post the spread of covid-19; the group is trying to renegotiate deal terms by about 30% for Krishnapatnam. The sectors where the group is going slow on the transactions include airports, ports, power and logistics