NEW DELHI:
Adani Green Energy
has pulled out of two proposed
wind power projects
and linked transmission lines, which would have seen a total investment of about $1 billion, in Sri Lanka after Colombo sought to trim the tariff.
The company wrote to Sri Lanka’s Board of Investment on Wednesday to convey its decision. “Adani Green Energy has conveyed its board’s decision to withdraw from further engagement regarding these projects. However, we remain committed to Sri Lanka and are open to future collaboration if the govt (there) so desires,” a company spokesperson said on Thursday.
The agreement for the project was signed in May 2024 when an interim govt headed by President Ranil Wikremesinghe was in office. The project entailed building two wind farms with a total capacity of 484 MW in Mannar and Pooneryn regions along with transmission lines to evacuate power. These were to be completed by 2026.
Adani Group finds revised tariff unviable
It came under scrutiny after Anura Kumara Dissanayake won the presidential election in Sept 2024 on anti-corruption plank and a promise to cancel the deal.
In Jan, his govt revoked the power purchase agreement along with orders to review the project and renegotiate the tariff from $0.08 per unit to $0.06 or lower.
Adani Group found the revised tariff economically unviable, but told the Board of Investments it respected the Sri Lankan govt’s sovereign right to review the project.
