Gautam Adani pulls out of BIG Rs 8684 crore power project in THIS country due to...

Billionaire Gautam Adani's company, Adani Green Energy, has withdrawn from two proposed wind power projects in Sri Lanka, following the Island nation's new government deciding to renegotiate tariffs. Adani Green Energy is the renewable arm of Adani Group, with a market cap of Rs 1.45 lakh crore. "Adani Green Energy has conveyed its Board's decision to respectfully withdraw from further engagement in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka," the firm said in a statement.

The company was to invest a total of USD 1 billion (Rs 8684 crore) in generating electricity from wind at two projects and laying transmitting lines to take it to users, PTI reported. The plan came under the scrutiny of the newly elected administration under President Anura Kumara Dissanayake who wanted to reduce electricity costs.

Adani group, however, continues to be invested in a USD 700 million terminal project at Sri Lanka's largest port in Colombo. AEGL was originally supposed to develop two wind farms with a total capacity of 484 megawatts in Sri Lanka's Mannar and Pooneryn regions, with an investment of USD 740 million. The project, slated for completion by mid-2026, had a rough start with opposition from environmental groups and legal challenges in Sri Lanka's Supreme Court over ecological concerns.

READ | Good news for India's richest banker, RBI lifts ban on his Rs 392000 crore company, allows it to...

In May last year, Sri Lanka's previous government agreed to purchase power from the proposed Adani wind plant at USD 0.0826 per kilowatt-hour. The new government began investigating the contract following an indictment against the Adani group founder chairman Gautam Adani and his key associates in a US Court for allegedly paying bribes to Indian officials to secure contracts to supply renewable energy in the country.

In January, the new administration revoked Adani's power purchase and began investigations. Thereafter it opted to review and renegotiate the terms to bring the cost below USD 0.06 per unit. Unable to meet the demand, the Adani group has withdrawn from the project.

(With inputs from PTI)