India’s Adani Group has refuted reports claiming that its 484 MW wind power projects in Mannar and Pooneryn have been cancelled, stating they are false and misleading.
Issuing a statement, a spokesman for the Adani Group said the company categorically states that the project has not been cancelled.
“The Sri Lankan Cabinet’s decision of 02 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies,” the statement read.
The statement added that Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth.
The clarification comes in the backdrop of local media reporting that President Anura Kumara Dissanayake’s government has decided to revoke the contract awarded to India’s Adani Group for the 484 MW of wind power plants in Mannar and Pooneryn signed under the Ranil Wickremesinghe regime in June last year.
When inquired by Newswire, a Senior Government official said the decision was taken as the Adani Green Energy SL Ltd has proposed US cents 8.26 per kilowatt hour while local bidders have offered prices as low as 4.88 US cents.
He further said that as the revocation requires a standard procedure, the Cabinet of Ministers has appointed a committee to review the agreement and submit recommendations.
He said the newly appointed committee is tasked with reviewing issues surrounding the contract, such as government-to-government and environmental.
Stating that the committee has commenced its process to review the contract, he said that based on the committee’s recommendations, the government will take a final decision on the Adani project.
In February 2023, Sri Lanka’s Board of Investment (BOI) approved Adani Green Energy’s $442-million wind power project, with plants planned for Mannar and Pooneryn in Northern Sri Lanka.
Since then, the project faced legal challenges, with its details being subjected to Supreme Court review.
Adani Group, led by Indian billionaire Gautam Adani, is also involved in the development of a $700-million container terminal at the Colombo Port, adding to its growing presence in Sri Lanka. (Newswire)
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