Adani Green, the renewable energy arm of the Adani Group, has decided to withdraw from the proposed $1 billion wind farm and power transmission projects in Sri Lanka. The move comes after the company had got most clearances for these projects.
In a media statement Adani Green said that it has conveyed the board’s decision “to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka.” It added that it remained committed to Sri Lanka and open to future collaboration if the Government of Sri Lanka so desired.
In a letter separately addressed to the chairman of Board of Investment in Sri Lanka, Arjuna Herath, Adani Green had pointed out that the company is bowing out despite having spent $5 million in “predevelopment activities” for setting up 484 MW renewable energy wind farms at Mannar and Pooneryn in Sri Lanka, along with associated transmission network. The company has been in discussion with the Sri Lankan government and various government agencies for the last two years.
Along with the wind farms it was also envisaging associated transmission system, as also additional 220 KV and 400 KV Transmission network expansion to carry electrons to consumptive centres in the southern part of Sri Lanka. It said these projects are envisaged to collectively see investments of about $1 billion in Sri Lanka, based on build own operate concept.
The company pointed out that with the exception of Mannar environmental approval and an associated Supreme Court case, the company had procured almost all clearances and had also “worked on lands for the project”. Despite all steps taken for setting up the project, the company said that it had learnt of the government reconstituting two committees to “renegotiate the project proposal”.
“This aspect was deliberated at the Board of our company and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project,” states the letter.
Source: thehindubusinessline