Gautam Adani-owned Adani Green Energy has decided to withdraw from its planned $1 billion wind energy project in Sri Lanka. Despite securing most approvals, Adani Green cited delays including unresolved environmental clearance and a Supreme Court case, as reasons for its decision.
When contacted, Adani Green shared a letter with FinancialExpress.com, that it had sent to Sri Lanka’s Board of Investment (BOI), informing about its decision to “respectfully withdraw” while remaining open to future projects.
Adani Green has been under discussions with the different government departments of Sri Lanka since past more than two years in respect of establishing 484 MW Renewable Energy Wind Farms at Mannar and Pooneryn, Sri Lanka, along with its associated Transmission system, as also additional 220 KV and 400 KV Transmission network expansion to carry electrons to consumptive centers in the southern part of Sri Lanka.
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In pursuit of said proposal, the company said, Adani Green teams had several rounds of discussions with state appointed committees and after more than 14 rounds of discussions, approval was accorded on Tariff, fixed for 20 years, for the Power Purchase Agreement. In the letter reviewed by FinancialExpress, Adani Green also said that it had procured almost all clearances, with the exception of Mannar Environmental approval and an associated Supreme Court case. Adani Green added, “Similarly, we have worked on lands for the project, as well as associated transmission system. Till date, the company has spent about USD 5 Mn on the predevelopment activities.”
The letter further stated, “Our executives recently had discussions with CEB officials as also with Ministry officials at Colombo. It was learnt that another Cabinet appointed negotiations committee (CANC) and Project Committee (PC) would be constituted to renegotiate the project proposal. 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.”
“As we bow out, we wish to reaffirm that we would always be available for the Sri Lankan Government to have us undertake any development opportunity, if it ever considers Adani Group to participate,” it further stated.
The 484 MW Renewable Energy Wind Farms project by Adani Green Energy in Mannar and Poonerin was approved by Sri Lanka’s Board of Investment in early 2023.
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