India’s Adani Group has decided not to proceed with $440m of wind power projects in Sri Lanka after the new government has sought lower tariffs, following a review of the subsidies.
According to a Bloomberg News report, the Indian conglomerate headed by billionaire Gautam Adani wrote to Anura Kumara Dissanayake’s government, saying its Adani Green Energy unit would end its involvement after Sri Lanka indicated it wanted to renegotiate the wind projects, totalling 484MW, and review a 20-year tariff agreement.
It was decided that while the company “fully respects” the sovereign rights of Sri Lanka it would “respectfully withdraw”, Adani stated in the letter sent on 12 February.
The letter said the company had spent about $5mn on “pre-development activities” for the two wind farms.
The wind projects and associated transmission lines would have seen an investment of about $1bn in Sri Lanka, according to the letter seen by Bloomberg News.