(Bloomberg) -- Adani Group expects funding for its greenfield coal-to-polyvinyl chloride project to be tied up in the next six months, rebutting a recent local media report that the initiative was stalled. 

After the financial closure, “full-fledged procurement and construction activities at the site will commence,” the ports-to-power conglomerate said in a statement Monday. “We are committed to completing the project in an expeditious manner so as to meet the original timelines.”

Local news wire, Press Trust of India reported on Sunday that the Adani Group had suspended work on a 349 billion-rupee ($4.2 billion) petrochemical project at Mundra. A wholly-owned subsidiary of the group’s flagship Adani Enterprises Ltd. is setting up this plant in Gujarat.

The Gautam Adani-led conglomerate has been reassessing its capital expenditure plans after a scathing short seller report in January lopped off more than $100 billion from its market value. The group has recovered some ground since by repaying loans to retrieve pledged shares, paring costs and reassuring lenders as well as investors. 

Adani Maps Comeback Strategy After $135 Billion Hindenburg Rout

While the engineering design and other activities are underway at the petrochemical plant “in an accelerated mode,” the conglomerate has “decided to keep the major equipment procurement and site construction activities on hold” until funding is secured. 

Polyvinyl chloride is used to make plastic items from food containers to sewage pipes. India manufactures it using largely imported crude oil and other feedstock. 

©2023 Bloomberg L.P.