The Adani group has suspended work on a Rs 34,900-crore coal-to-polyvinyl chloride (PVC) project in Mundra, Gujarat as it looks to cut debt and invest only in existing capex programmes in core infrastructure — in the aftermath of the Hindenburg report which wiped off billions from the market capitalisation of group stocks.

Group chief financial officer Jugeshinder Singh had told analysts last month after the third quarter results of Adani Enterprises Limited the company would ``review’’ its plans to build the 2mt-facility.

The group will now not raise debt of Rs 14,000 crore from a consortium of banks to finance the project.

The Adanis had announced the project in 2021 to produce grades such as suspension PVC, chlorinated PVC and emulsion PVC.

Observers feel this is a temporary move, and the group is likely to take up the project once things stabilise.

A PTI report said the group has written mails to vendors and suppliers asking them to “suspend all activities” on an immediate basis. The conglomerate asked them to “suspend all activities of the scope of work and performance of all obligations” for the project till further notice.

The decision, it said, follows “unforeseen scenario”.

The management, it said, was “re-evaluating various project/s being implemented at group level in different business verticals. Based on future cash flow and finance, some of the project/s are being re-evaluated for its continuation and revision in timeline’.

At the meeting with investors after the Adani Enterprises’s results, Singh said it would not make any new commitments on the capex front as it rides out the current “market volatility’’ but will continue to invest in ongoing or committed projects such as the Navi Mumbai airport, roads and data centres.

He said investments in the core infrastructure sector, which include energy and utilities, green hydrogen and transport and logistics portfolio will continue.

However, it will not bid for new road projects including hybrid annuity mode or EPC projects, that will come up in the present quarter.