LIC’s debt exposure in the Adani Group of Companies fell slightly to Rs 6,183 crore on March 5 from Rs 6,347 crore on December 31, 2022, the parliament was informed on Monday.

In a written reply to the Lok Sabha, Finance Minister Nirmala Sitharaman said: “The Life Insurance Corporation of India (LIC) has advised that its liability exposure to Adani Group of Companies is Rs 6,347.32 crore and Rs 6,182.64 crore as of December 31, 2022, and March 5, 2023”.

LIC’s debt exposure in Adani Ports and SEZ is Rs 5,388.60 crore as of March 5. Adani Power (Mundra) has an exposure of Rs 266 crore, Adani Power Maharashtra Ltd – Phase I (Rs 81.60 crore), Adani Power Maharashtra Ltd – Phase III (Rs 254.87 crore), Raigarh Energy Generation Ltd (Rs 45 crore) and Raipur Energen Ltd (Rs 145.67 crore).

Sitharaman said five general insurers in the public sector had been informed that they have no loan/credit exposure to the Adani Group of Companies.

“Public sector banks have been informed that loans are approved after assessing the viability of the project, expected cash flow, risk factors and availability of sufficient security and that the repayment of the loan is guaranteed by the revenue generated by the project and not by the market value of the company,” said the Minister explained.

Adani Group’s shares were hit hard in January after US-based short-seller Hindenburg filed a barrage of allegations against the Adani group, including fraudulent trading and price manipulation.

The group dismissed the allegations as lies, saying it complied with all legal and disclosure requirements.