The Adani group’s wind power projects in Sri Lanka are in a state of flux with the coming to power of a new government in the island nation.
Adani on Friday said the projects were intact after reports claimed they have been revoked by the Anura Kumara Dissanayake-led government.
Earlier, a report in the Daily FT said the Lanka cabinet led by Dissanayake has annulled the decision made by the previous Ranil Wickremesinghe-government in June to award two wind power plants to Adani Green Energy SL Ltd, an arm of Adani Green Energy Ltd.
The projects at Mannar and Pooneryn with the capacity of 484mw were reportedly challenged on various grounds, including the arbitrary and excessive price of US cents 8.26 per kilowatt hour even as local bidders were offering prices which were as low as 4.88 cents.
Further, environmental organisations, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd, were against the project alleging deficiencies in Environmental Impact Assessment. They had also cited that Mannar is an important habitat for migratory birds.
Similarly, an AFP report said the island nation has cancelled a power purchase agreement (PPA) with the conglomerate after the allegations of bribery made by US authorities in November.
The report quoting an unnamed senior official from the energy ministry said the government has revoked PPA but the project is not cancelled and that a committee has been appointed to review the project.
On November 20, the US Securities and Exchange Commission (SEC) had charged Gautam Adani, chairman of the Adani group, his nephew Sagar and Cyril Cabanes, an executive of Azure Power Global Ltd, for ``conduct arising out of a massive bribery scheme’’.
According to the SEC’s allegations, the bribery scheme was orchestrated to enable the two renewable energy companies to capitalise on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government
Reports about the cancellation of the Sri Lankan wind power projects led to the shares of AGEL ending in the red on the bourses. It settled at ₹1,011.95 on the BSE, a drop of 0.99 per cent over the last close.
Reacting to the reports, a spokesperson from the Adani group said they were false and misleading. The group pointed out the Sri Lankan government was only revaluating the tariff as part of a standard review process.
“We categorically state that the project has not been cancelled. The Sri Lankan cabinet’s decision of January 2, 2025 to re-evaluate 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 group said.
“Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth,’’ it added.