Adani Green Energy has decided to pull out of its $1 billion wind energy project in Sri Lanka despite securing most approvals. The company cited delays in environmental clearances and an ongoing Supreme Court case as the key reasons for withdrawing.
Reasons for Withdrawal
- The project faced delays in environmental approvals in Mannar.
- A Supreme Court case added further uncertainty.
- A new Cabinet-appointed Negotiations Committee (CANC) and Project Committee (PC) was formed to renegotiate the project, leading to prolonged discussions.
The company, in its statement, said it respects Sri Lanka’s sovereign rights and decisions, and hence, it will withdraw from the project.
Project Details & Investment
- The plan was to build 484 MW wind farms in Mannar and Pooneryn.
- It also included a 220 KV and 400 KV transmission network expansion to strengthen Sri Lanka’s energy infrastructure.
- Adani Green had already spent $5 million on pre-development work, including land acquisitions and approvals.
Future Plans
While stepping away from this project, Adani Green expressed interest in future opportunities in Sri Lanka if the government invites them for new energy projects.
Meanwhile, Adani Green Energy’s stock rose by 2.1%, ending a five-day losing streak, and is now trading at ₹936 on the NSE.