Adani Green Energy exits Sri Lanka wind project over tariff negotiations: Report

The proposed wind projects in Mannar and Pooneryn, including transmission lines would have resulted in a $1 billion investment for Sri Lanka if it had happened.

Adani Green Energy Ltd will not be building two wind power projects in Sri Lanka after the government sought lower tariffs, Bloomberg reported, citing a letter from the Adani Group.

Adani Green Energy, a business based in India, informed a Sri Lankan government body in writing that it would be pulling out of two proposed wind generating projects in the country.(Reuters)

HT can't independently verify the information.

The proposed wind projects in Mannar and Pooneryn, including transmission lines, would have resulted in a $1 billion investment for Sri Lanka if it had happened, according to the report.

Sri Lanka, led by President Anura Kumara Dissanayake was trying to reduce the power prices to less than 6 US cents, according to the report which added that this came after the previous administration had agreed to buy electricity at 8.26 US cents.

This comes at a time when the Adani Group also faced setbacks in Bangladesh over unpaid dues and infrastructure projects being scrapped in Kenya after the bribery probe against the Group by the US Securities and Exchange Commission (SEC).

The Sri Lankan project allowed great scope for Adani to expand its wind portfolio globally, which at the moment is a small portion of its generation mix.

It even had plans to ship the renewable energy from Sri Lanka to India; Plans which involved the two nations linking their power grids.

How did Adani shares perform?

Adani Green Energy Ltd shares were trading at ₹918.75 on the Bombay Stock Exchange (BSE) at 3 pm IST. This was a rise of 0.19% or ₹1.70.

Meanwhile, the flagship Adani Enterprises Ltd was trading at ₹2,251.80, a drop of 4.31% or ₹101.35.