Latest News | Lockdown Delayed Project Execution, Led to Cost Escalation: Adani Transmission
Get latest articles and stories on Latest News at LatestLY. Adani Transmission on Monday said the coronavirus-induced lockdown has delayed execution of its under-construction projects and escalated costs.
New Delhi, Jun 1 (PTI) Adani Transmission on Monday said the coronavirus-induced lockdown has delayed execution of its under-construction projects and escalated costs.
The company is also worried that 25 per cent of its earmarked capital expenditure for FY21 would remain unutilised.
"The continued lockdown has also resulted in migration of resources affecting project execution work due to non-availability of work force and disruption of allied services," it said in regulatory filing.
According to the filing, delay in getting multiple regulatory approval, that is ROW (right of way), forest approvals, wildlife, defense, civil aviation and power and transmission line crossing will delay the SCOD (scheduled commercial operation date), leading to cost escalation.
"In view of lockdown disruption, our suppliers, contractors and resources down the line have not been able to perform their obligation and this may likely get further extended, for which extension of time has been provided to them. This will result in delay of COD (commercial operation date) beyond our control," it said.
"Owing to the uncertainty in the availability of the labour force and moderate delay in key materials, and moderate hurdles in the availability of technical specialists of vendors, we envisage that roughly 25 per cent of the planned capex (capital expenditure) will be unutilized. The unutilized capex will impact the targeted EBITDA & Regulated Asset Base for FY21," it added.
The government, on March 25, imposed a 21-day nationwide lockdown to fight COVID-19 pandemic, and has been gradually relaxing the guidelines for restarting economic activities.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)