Sri Lanka is set to pay Rs.300-500 million to India’s Adani Company for initial costs sustained by it in terms of the two renewable energy projects, a top source said.
India’s Adani Green Energy withdrew from the projects after differences with the National People’s Power (NPP) government over pricing. The company asked for reimbursement of the initial expenses it incurred here for the execution of the project. The letter was sent in May this year announcing withdrawal from the project and seeking reimbursement.
Afterwards, the Sustainable Energy Authority of Sri Lanka, upon request by the Energy Ministry, sought legal advice on whether payments should be made as requested by the Indian company.
The source said, on condition of anonymity, that legal advice was received yesterday for reimbursements of some of the expenses, and the total amount would be in the range of Rs.300 to 500 million. The Authority is firm that payment made by Adani for the energy permit need not be reimbursed no matter what. However, the exact amount of reimbursements would be determined after consultation of the Attorney General and approval of the board of directors of the Authority within the next few months.
The company was to build wind power plant projects in the Mannar and Pooneryn towns in the Northern Province, investing $442 million.
The project was expected to add at least 350 MW to the national grid by 2025. The company sent a letter to the government authorities in May this year asking for reimbursement of expenses it made initially for research and investigation along with the Sustainable Energy Authority (SEA) in Sri Lanka.
The source said that the entire deal with Adani would be closed after clearance of due reimbursements for fresh tenders to be called for the same renewable energy projects in the north.
“Adani can also participate in the tender process then,” the source said.
Adani struck the deal for the projects with the previous government. The Cabinet approval had been given for them at that time.
(Daily Mirror)
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