Sri Lanka and Adani Group may again discuss wind energy project

The Sri Lankan government and the Adani Group may again discuss a proposed wind energy project and two transmission projects following the Indian company’s decision to pull out after being told to revise itstariff.

The two sides have decided to go in for another round of discussions next week, “signalling that the deal may not be entirely off”, the Daily Mirror reported on Friday.

Further dialogue

“Informed sources said it is highly likely that both the Indian and Sri Lankan sides will meet behind closed doors next week to discuss concerns and see if a mutual decision can be reached to continue discussing the implementation of the wind energy project in Mannar and two other transmission projects in the country,” the Colombo-based daily said.

The development came a day after it became known that Adani Group had decided to pull out of Sri Lanka as the new government insisted that it must revise its proposed tariff for power produced from the energy project.

Sri Lanka and the Indian company had held 14 rounds of discussions over the project -- with the previous government.

Also Read: Also read: Sri Lanka wants Adani wind power project at lower cost

What India was told

When President Anura Kumara Dissanayake visited New Delhi in November, he told Indian officials that his government was ready to discuss the Adani project but the tariff rates quoted by the company had to be reduced.

But with the process dragging further, Adani Green Energy Ltd Co Secretary Pragnesh Darji told the Board of Investment in Sri Lanka that the company was withdrawing from the project.

Adani project

The proposal was to establish 484MW renewable energy wind farms at Mannar and Pooneryn in the island’s north along with associated transmission system besides additional 220KV and 400KV transmission network expansion to carry electrons to consumptive centres in southern Sri Lanka.

Adani Green said it had worked on all clearances and licenses, with the exception of the Mannar environmental approval. A case was also dragging in the Supreme Court in Sri Lanka over issues related to environmental concerns.

While campaigning for the presidential and later parliamentary elections late last year, now President Dissanayake had hit out at the Adani project on account of its high tariff and vowed to axe it if he rode to power.

Sri Lanka probes

The Daily Mirror reported that an investigation was on in Sri Lanka to know how the Adani withdrawal letter found its way to the media before the president and the finance minister learnt about it.