Adani Group to withdraw from wind power projects in Sri Lanka
Company cites Lankan government’s decision to form new panel to renegotiate project proposal behind its move to withdraw from projects
India’s Adani Group has announced that it was withdrawing from two planned wind power projects in Sri Lanka that had come under vehement criticism from political groups and greens in the island nation.
Adani Green Energy said it had conveyed the decision to Sri Lanka’s Board of Investment “to respectfully withdraw from further engagement in the wind energy and two transmission projects.
Also read: Sri Lanka wants Adani wind power project at lower cost
‘Committed to future collaboration’
“However, we remain committed to Sri Lanka and are open to future collaboration if the government of Sri Lanka so desires," a spokesperson for Adani Group said.
Last month, the Sri Lankan government said it had opened talks with the Adani Group to reduce the cost of electricity from the projects, which were estimated to cost a total of $1 billion.
Adani Group’s letter
"It was learnt that another Cabinet-appointed negotiations committee and Project Committee would be constituted to renegotiate the project proposal," the Adani Group said in a letter to the chairman of the Board of Investment.
"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 letter said.
Also read: Sri Lankan committee to review Adani wind power projects in Mannar, Pooneryn
Allegations against Adani
Sri Lanka began reviewing the Adani projects after US authorities in November accused its billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations.
Under an earlier deal with Sri Lanka, Adani Green was to build two wind power projects in Mannar town and Pooneryn village, both in the north of the country.
Criticism in Sri Lanka
But the projects came under widespread attack in Sri Lanka, where current President Anura Dissanayake denounced it last year as too costly and vowed to axe it if he took power.
Environmentalists also attacked the projects, saying they would harm bird life in Sri Lanka.
Also read: Sri Lanka revokes Adani Group's controversial $440 million wind power project
The Adani Group is also involved in constructing a $700 million terminal project at Sri Lanka’s largest port in Colombo.