Home Business Month after pullout by Adani Group, Sri Lanka says it’s ready to renegotiate $442 mn energy project
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Month after pullout by Adani Group, Sri Lanka says it’s ready to renegotiate $442 mn energy project

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Sri Lanka has said it remains open for renegotiations on the USD 442 million wind energy project after India-based company Adani Group pulled out its venture from the island nation last month, The Tribune learnt on Saturday.

Sri Lanka’s Energy Ministry has requested Adani Group to provide in writing about the future of the project in the island nation, the people familiar with the matter told this newspaper.

The Sri Lankan government has appointed a committee to renegotiate the price for the project with the Indian company, a source informed.

The island nation’s government relayed its position to the Indian company last week, the above source said.

The Sri Lankan side wants to reach a mutual agreement to continue the implementation of two 484 megawatt (MW) renewable energy wind farms in the country’s Mannar town and Pooneryn village, another source said.

The project allocated to the Adani group’s Adani Green Energy(AGE) also includes the associated transmission system with an additional 220 kilovolt (kV) and 400 kV transmission network expansion to carry power to the consumptive centres in southern part of Sri Lanka.

AGE had been holding threadbare discussions with the Ceylon Electricity Board (CEB) and the country’s government departments for over two years. The Sri Lankan side wanted the company to reduce its tariff rates.

The group had announced an investment of USD 442 million for its project, of which USD 5 million has been spent on predevelopment activities.

(The Tribune)

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