Srinagar:
Govt owned J&K bank has given loan to Adani Power, allowing its flexible structuring, documents show.
Jammu and Kashmir Bank (JK Bank) has announced a substantial downsizing of 27% in its Restructured Loan book during the fiscal year 2024 after the loans of Adani power were restructured.
A significant contributor to this downsizing was the successful adjustment of two accounts belonging to Adani Power which were subjected to flexible structuring by JK Bank. These accounts collectively held an outstanding balance of approximately Rs. 188 crore at the end of the previous fiscal year.
“Significant downsizing of 27% has been achieved in the Restructured Loan book during FY 2024 while the two accounts of Adani Power (Maharashtra & Mundra) which had been subjected to flexible structuring and had outstanding balance of about Rs. 188 crore at end of last fiscal also got adjusted during the year. The remainder of the Restructured Loan Book is performing satisfactorily with collection efficiencies of well above 90% and we envisage further downsizing / upgrade of same during current FY,” documents of J&K bank show.
Adani Power Limited (APL), a part of the Adani Group, is the largest private thermal power producer in India and has power generation capacity of 15,250 MW comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, and a 40 MW solar power project in Gujarat.
Congress leader Rahul Gandhi has questioned the Bharatiya Janata Party’s (BJP) support for the Adani conglomerate. Gandhi has consistently criticized the government’s alleged favoritism towards the Adani Group. The Congress leader has been vocal about what he perceives as preferential treatment accorded to Adani companies in various government policies and contracts.
Former Chief Minister and PDP president, Mehbooba Mufti, earlier last year while crticizing the demolition drive by Jammu and Kashmir government accused the BJP-led Centre of using Jammu and Kashmir to distract the “country from pressing issues such as unemployment and the Adani controversy.”
“They (BJP) can’t find a better distraction than Jammu and Kashmir, like the demolition drive, to divert attention from the Adani issue and the damage it has done to the country’s economy,” Mehbooba said.