mumbai gautam adani is suspending activities at the rs 34900crore petrochemicals project in mundra gujarat as the billionaires business empire slows down spending following a shortseller attack news agency pti reported on sunday in 2019 adani had announced plans to foray into indias petrochemicals sector with a factory in his home state of gujarat two years later he incorporated mundra petrochem and adani petrochemicals to set up feedstock coal petcoke limestone lpg lng lpg green fuels etc based refineries and petrochemicals complexes both mundra petrochem and adani petrochemicals are 100 subsidiaries of his empires flagship adani enterprises pti reported that the business tycoon has decided to freeze the proposed onemilliontonne green pvc project due to unforeseen circumstances adani according to mails seen by the news agency has asked vendors and suppliers to suspend all activities and performance of all obligations for mundra petrochems green pvc project till further notice the report further said that the conglomerates management was reevaluating various projects based on its future cash flow and finance this is the latest project that the adani group has reevaluated since the shortsellers attack earlier it halted a rs 7017crore deal to acquire db power and withdrew a rs 20000crore further public offering of adani enterprises in january new yorkbased shortseller hindenburg research had accused the indian conglomerate of using offshore shell companies to inflate its listed companies stock prices as well as of accounting fraud in its report it also flagged concerns about the adani groups rs 23lakhcrore debt in the report adani has denied the allegations when contacted for comments on the suspension of activities at the green pvc project an adani group spokesperson said adani enterprises will be evaluating the status of growth projects in primary industry vertical over the coming months he didnt elaborate which are these growth projects and in which industries he added the balance sheet of each of our independent portfolio companies is very strong we have industryleading project development and execution capabilities strong corporate governance secure assets strong cash flows and our business plan is fully funded we remain focused on executing our previously outlined strategy to create value for our stakeholders pvc is the worlds thirdmost widely produced synthetic polymer of plastic it finds wide applications from flooring to making sewage pipes and other pipe applications in insulation on electrical wires packaging and manufacture of aprons etc adani enterprises had planned the project as pvc demand in india at 35 mtpa was growing at the rate of 7 year on year with nearstagnant domestic production of pvc at 14 million tonnes india is dependent on imports to keep pace with the demand