Project Withdrawal
Adani Green turns off switch on Sri Lanka energy project on prolonged delays
This story was originally published at 15:14 IST on 13 February 2025
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--Adani Green to withdraw from Sri Lanka energy, transmission projects
MUMBAI – Adani Green Energy Ltd. has withdrawn from a proposed $1 billion wind energy project in Sri Lanka, the Adani Group said in a media statement Thursday. The company pulled out from the project due to the prolonged delay in its implementation, despite having held protracted discussions with state-appointed committees and various government departments over the last two years, a source told Informist. The newly appointed Sri Lankan cabinet under Prime Minister Anura Kumara Dissanayake was looking to renegotiate the tariff for the project, but "nothing was moving" with no commiitee discussions, the source added.
Amid the Hindenburg controversy involving the Adani Group, the company's Sri Lanka project seemed to be in jeopardy last year. Media reports claimed that the Dissanayake government had revoked the 484-megawatt wind power project, which was originally awarded by former Sri Lankan president Ranil Wickremesinghe in June 2024.
The project was embroiled in controversy over alleged environmental concerns and the arbitrary and excessive price of $0.0826 per kilowatt-hour for 20 years, despite local bidders offering much lower prices, media reports said. However, the group later rebuked this report, claiming that the Sri Lankan cabinet's decision to re-evaluate the tariff approved in May 2024 is part of a standard review process post the regime change in the country.
Adani Green has already spent around $5 million on the pre-development activities with respect to this project. The company, however, remains open to collaborating on the project if the Sri Lankan government plans to continue with the contract, the source said. "Adani Green also worked on all clearances and licenses. With the exception of Mannar Environmental approval & an associated Supreme Court case, we have procured almost all clearances," as per a letter from the Adani group company to the Sri Lankan government. The source mentioned above confirmed the validity of this letter.
The project was for establishing 484 MW of wind farms in Sri Lanka's Mannar and Pooneryn, along with setting up the associated transmission system consisting of an additional 220 kilovolt and 400 KV of transmisison network expansion.
At 1406 IST, shares of the company traded at INR 921.60 on the National Stock Exchange, up 0.5%. End
US$1 = INR 86.89
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Aman Aryan
Edited by Tanima Banerjee
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