Adani withdraws from proposed wind power projects in Mannar and Pooneryn

Adani Green Energy Limited (AGEL) has withdrawn from the proposed project to establish 484MW wind farms in Mannar and Pooneryn, Sri Lanka. 

In a letter sent yesterday by AGEL Company Secretary Pragnesh Darji to Sri Lanka’s Board of Investment (BOI) Chairman Arjuna Herath, the company says “Adani Green has been under protracted discussions with CEB and various Government departments since past more than two years, in respect of establishing 484MW Renewable Energy Wind Farms at Mannar and Pooneryn, Sri Lanka, along with its associated transmission system, as also additional 220KV and 400KV transmission network expansion to carry electrons to consumptive centres in the southern part of Sri Lanka.”

“These projects are envisaged to collectively see investments of about USD1 billion in Sri Lanka, based on build own operate concept,” it states. “Furthermore, our Corporate Social Responsibility (CSR) activities too would have accentuated in the contiguous geographies covering healthcare, education, infrastructure development, skill development, etc., benefiting local communities for better quality of life imperatives.”

“In pursuit of said proposal, Adani Green teams had several rounds of discussions with state appointed committees and after more than 14 rounds of discussions, approval was accorded on tariff, fixed for 20 years, for the Power Purchase Agreement,” The letter maintains. “Adani Green also worked on all clearances and licenses. With the exception of Mannar Environmental approval & an associated Supreme Court case, we have procured almost all clearances.”
“Similarly, we have worked on lands for the project, as well as associated transmission system. Till date, the company has spent about USD 5 Mn on the predevelopment activities,” it outlines. “Our executives recently had discussions with CEB officials as also with Ministry officials at Colombo.”

“It was learnt that another Cabinet appointed negotiations committee (CANC) and Project Committee (PC) would be constituted to renegotiate the project proposal,” it states. “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.”
“As we bow out, we wish to reaffirm that we would always be available for Sri Lankan Government to have us undertake any development opportunity, if it ever considers Adani Group to participate,” it concludes. “We wish to convey our best wishes and gratitude to Government of Sri Lanka for the opportunity of engagement.