"Respectfully Withdraw:" Adani Green Quits From Sri Lanka Wind Power Projects
New Delhi: Adani Green Energy announced that it will withdraw from building two renewable energy wind farms in Sri Lanka, after the new government sought to renegotiate the deal. The decision was communicated in a letter sent by the company to Sri Lanka’s Board of Investment on Wednesday.
In May last year, the previous Sri Lankan government had signed a 20-year deal to purchase power from Adani wind plant at 8.26 US cents per kilowatt. Meanwhile, Anura Kumara Dissanayake government said that it has initiated talks with the Adani Group to reduce the cost of electricity from the projects, that they were not willing to pay more than 5.9 US cents in accord with with tariffs of other plants in the same area.
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Last month, Sri Lanka’s cabinet has decided to revoke the power purchase agreement with the Adani Group and the government wanted to review and renegotiate the terms.
“… It was learnt that another Cabinet appointed negotiations committee (CANC) and Project Committee (PC) would be constituted to renegotiate the project proposal. This aspect was deliberated at the Board of our company and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project,” the company said in a statement.
The Adani Green Energy’s exist from the project comes as the Dissanayake government reviews the company’s operations in Sri Lanka, following Adani Group chairman Gautam Adani and seven others indicted in New York in November last year on bribery charges.
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As per the deal, Adani Green was to build two wind power projects in Mannar town and Pooneryn village, both in the northern province of the island nation and was planning to complete it by mid-2026. Adani group has spent a total amount of $5 million in pre-developmental activities, which comprises obtaining clearances and arranging for land. The wind project has also subjected to criticism for its potential impact on a nearby bird corridor and on local fishing communities, report states.
“As we bow out, we wish to reaffirm that we would always be available for Sri Lankan Government to have us undertake any development opportunity, if it ever considers Adani Group to participate,” the letter added.
