- By Aditya Pratap Singh
- Thu, 13 Feb 2025 05:11 PM (IST)
- Source:JND
Adani Group News: Adani Green Energy, owned by billionaire Gautam Adani, has pulled out of two proposed wind power projects in Sri Lanka, as the new Sri Lankan government has decided to renegotiate tariffs.
"Adani Green Energy has conveyed its Board's decision to respectfully withdraw from further engagement in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka," the firm said in a statement.
The company was in plan to invest a total of US$1 billion in both projects to generate wind power and lay transmission lines to deliver it to consumers. The plan was considered by the newly elected administration led by President Anura Kumara Dissanayake, which wants to reduce the cost of electricity.
"However, we remain committed to Sri Lanka and are open to future collaboration if the government of Sri Lanka so desires" AGEL said.
However, the Adani Group continues to invest in a US$700 million terminal project at Sri Lanka's largest port in Colombo. AEGL was initially supposed to develop two wind power plants with a total capacity of 484 MW in Sri Lanka's Mannar and Poonamallee regions, investing US$740 million.
The project, which is scheduled to be completed by mid-2026, has had a troubled start, with opposition from environmental groups and legal challenges in Sri Lanka's Supreme Court over environmental issues.
In May last year, Sri Lanka's previous government agreed to buy power from the proposed Adani wind power plant at US$0.0826 per kilowatt-hour.
The new government has launched an investigation into the deal after Adani Group founder and chairman Gautam Adani and his key associates were indicted in a US court on charges of bribing Indian officials to secure contracts to supply renewable energy to the country.
In January, the new administration cancelled the Adani Power purchase and launched an investigation. It then decided to review and renegotiate the terms to bring the price down to US$0.06 per unit.
Unable to meet the demand, the Adani Group withdrew from the project.
The group informed the Sri Lankan government of its decision on February 12 and said it would constitute a Cabinet-appointed negotiation committee and a project committee to renegotiate the project proposal.
The AGEL board discussed the issue and, although the company fully respects Sri Lanka's sovereign rights and its options, it respectfully decided to withdraw from the project.
(With Inputs From PTI)