Adani Green Energy stock gains 3% amid reports on withdrawal from wind power projects in Sri Lanka
Adani Green Energy stock gains 3% amid reports on withdrawal from wind power projects in Sri Lanka
Adani Green Energy shares climbed 3 per cent to ₹946 during Thursday's intraday session on the BSE after reports emerged that the company is pulling out of its planned wind power generation and transmission project in Sri Lanka, alleviating concerns about the project's feasibility.
As per media reports referencing a letter from Adani Green Energy, the company has chosen to withdraw from two wind power projects in Sri Lanka following the new government's request for lower tariffs last month.
"Adani Green Energy has conveyed its Board’s decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires," Spokesperson at Adani Group was quoted as saying by news agency ANI.
Adani Group-Sri Lanka deal
Sri Lanka began talks with the Adani Group to revise the pricing of electricity from the projects, which were initially estimated at $1 billion.
"It was learnt that another Cabinet appointed negotiations committee and Project Committee would be constituted to renegotiate the project proposal," Adani Green wrote in a letter addressed to the chairman of Sri Lanka's Board of Investment, according to Reuters.
The Sri Lankan government initiated a review of the Adani Group's local projects following accusations by U.S. authorities in November that founder Gautam Adani and other executives were involved in a bribery scheme to obtain Indian power contracts. The Adani Group has dismissed these claims.
As per the agreement, Adani Green was set to develop two wind power projects in Mannar and Pooneryn, located in northern Sri Lanka. Additionally, the group is engaged in a $700 million terminal project at Colombo port.
Following severe power shortages during its 2022 economic crisis, Sri Lanka has been fast-tracking renewable energy initiatives to lessen its dependence on imported fuel.
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