“Adani’s USD 1.1 Billion Copper Project to Boost India’s Green Energy Infrastructure”


Adani Group’s copper factory in Gujarat, with a USD 1.1 billion investment, is gearing up to commence operations from March 2024. The greenfield copper refinery project, undertaken by Kutch Copper Ltd – a subsidiary of Adani Enterprises Ltd, will significantly contribute to India’s green energy infrastructure development. The factory’s phased production, supported by major approvals and financial backing from consortium banks, aims to meet the soaring demand for copper in the renewable energy, telecom, and electric vehicle industries.

Adani's USD 1.1 Billion Copper Project Set to Revolutionize Green Energy Infrastructure in India
Adani's USD 1.1 Billion Copper Project Set to Revolutionize Green Energy Infrastructure in India

The Adani Group’s ambitious copper refinery project in Gujarat is nearing completion and is anticipated to begin operations in March next year. Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, is spearheading the USD 1.1 billion greenfield copper factory in Mundra. The project is poised to play a pivotal role in bolstering India’s green energy infrastructure.

The copper factory, designed to produce 1 million tonnes per annum, will be developed in two phases. As per a PTI report, the first phase, with a production capacity of 0.5 million tonnes per annum, is expected to be operational by the end of the current fiscal year. KCL has successfully secured financial closure for Phase-1 through a syndicated club loan, with the consortium of banks providing the entire debt requirement amounting to ₹6,071 crore.

Furthermore, the ₹8,783-crore greenfield project has completed full debt tie-up with a consortium of banks, led by SBI earlier this year, while Adani Enterprises Ltd has invested equity in the venture. The project has obtained all necessary approvals, paving the way for its timely execution.

The rising demand for copper in India, driven by the flourishing renewable energy, telecom, and electric vehicle industries, has led to an increased dependency on imports. India’s copper production has struggled to meet this demand, resulting in a record 1,81,000 tonnes of copper imports during FY23 (April 2022 to March 2023 fiscal), while exports plunged to an all-time low of 30,000 tonnes.

In FY23, the country’s copper consumption reached an estimated 7,50,000 tonnes (612 KT in FY22), and the figure is projected to surge to 1.7 million tonnes by 2027 due to the burgeoning demand from the green energy sector.

The upcoming Adani copper factory’s strategic location in Gujarat and its significant production capacity will contribute significantly to reducing India’s copper import dependence. The refinery’s establishment is a vital step towards achieving energy security and supporting India’s green energy transition.

The project’s timely implementation and operational commencement in March 2024 are expected to boost the country’s copper supply chain and foster a robust infrastructure for the emerging green energy industry. Adani Group’s endeavor exemplifies its commitment to sustainable development and aligns with India’s aspirations of becoming a global leader in renewable energy adoption.

Sources By Agencies

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