Adani left wind project due to pricing dispute: Govt.

Friday, 21 February 2025 00:00 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman Dr. Nalinda Jayatissa says Adani exited after failing to agree on a lower tariff than proposed $ 8.26
cents per kWh
Says Govt. aimed to negotiate lower electricity tariff from Adani, similar to rates in India
Refuses to comment on potential re-engagement with Adani; says future talks depend on tariff reductions
Dismisses concerns over investment climate
Insists Govt. remains open to foreign investment in renewable energy at competitive rates

By Charumini de Silva

The Government yesterday denied claims that it cancelled the $ 1 billion wind energy project in Mannar with India’s Adani Green Energy, asserting that the company withdrew after failing to agree on a lower electricity tariff.

Addressing media inquiries at the weekly post-Cabinet meeting briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa confirmed that the Government remains committed to the development of wind energy in Mannar and is actively exploring alternative investors.

“The Government has been working to lower electricity rates since we took office. We only discussed reducing the unit rate from $ 8.26 cents for kWh — not cancelling the project. We even tried to negotiate for a lower rate similar to what Adani offers in India. Unfortunately, we could not come to an agreement, which is why Adani decided to leave,” Dr. Jayatissa explained.

When asked if the Government would re-engage with Adani for further discussions, Dr. Jayatissa declined to comment, stating that any future negotiations would depend on Adani’s willingness to lower its proposed tariff.

Adani Green Energy announced its withdrawal from the 484 MW wind energy project last week, sparking concerns over investment climate in the country.

However, Dr. Jayatissa dismissed allegations that the administration was driving away foreign investors, revealing that another company had already agreed to provide electricity at a lower rate than Adani’s.

“All we wanted was to get the best prices for our people,” he said, adding that the issue was discussed with Indian authorities during the President’s visit to India.

He vehemently opposed the notion that foreign investors were leaving the country after the Government took office. “Despite one investor leaving, many have expressed keenness on renewable energy projects. There are opportunities for more investors to come to Sri Lanka and invest at a reasonable price,” he said.

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