Tuesday Jan 07, 2025
Tuesday Jan 07, 2025
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Former MP and Power and Renewable Energy Deputy Minister Ajith P. Perera
The Samagi Jana Balawegaya (SJB) yesterday called on the Government to terminate the Memorandum of Understanding (MoU) signed with the Adani Group in Sri Lanka to purchase renewable energy sources to provide a competitive opportunity, which will be opened to any local or foreign companies to invest in.
Former MP and Power and Renewable Energy Deputy Minister Ajith P. Perera addressing the media yesterday at the SJB’s Head Office claimed that the Cabinet had approved purchasing of the country’s renewable energy resources from the Indian based Adani Group without a tender, without a competitive procedure, and without transparency.
“They have approved this project based on terms that will be detrimental to the country. President Anura Kumara Dissanayake in his election platforms claimed that this project would not be taken forward. However, after his recent visit to India, he is silent over Adani Group’s project,” Perera said, adding that the former Government has not called for competitive prices with the Adani Group.
He also said that this was not an agreement between two countries, and agreements without calling tenders could only be signed between two countries; however, in this case, the State-owned Ceylon Electricity Board (CEB) had signed on behalf of the Government with the Adani group, which does not belong to the Indian Government.
“The Indian Government does not own any shares in the Adani Group, therefore this agreement is not an agreement with the Indian Government as it is not an investment done by the Indian Government. When signing agreements between two countries, there is no need for a competitive process as they are based on concessional terms but here, a private company has entered into agreements with the State-owned CEB without following the competitive process and world standards for electricity prices,” he explained.
Perera said that the agreement with the Adani Group could be revoked and if competitive tenders were called for renewable energy sources like solar and wind power, these energy sources could be generated at 50% less than the price of Adani Group.
“While Adani in India provides a unit of electricity to the Indian Government for $ 0.04, it will provide a wind power unit to Sri Lanka for $ 0.08. This is unfair. A competitive platform should be created in a way that any company in the world can compete. At the moment, some foreign investors have shown their willingness to come to Sri Lanka,” he said, adding that the Government should revoke Adani Group’s agreement and make it open to any Indian, local, and foreign companies to invest in the renewable energy sector in Sri Lanka.
According to Perera, delaying to revoke the agreement with the Adani Group is a national crime as it incurs a huge loss to the country’s industrial development and the country will be dragged backwards. “It affects the reduction of electricity prices for domestic consumers. Therefore, agreements that are detrimental to the country should be removed and a new process should be implemented to provide space for competitive investments,” he pointed out.
Recalling the detailed statement made by President Dissanayake at the Parliament regarding revoking agreements made without calling competitive prices as they are detrimental to the country and unfairness in reaching such agreements in wind and solar energy production, he said it was high time for the President to keep his pledges to the people to give them some relief.
“Now the President has power to revoke such agreements and call for fresh agreements based on a competitive pricing process. The country can get electricity at the lowest price only through competition,” he said, adding that the SJB will support the Government if it revokes all such agreements that are detrimental to the country’s development.
