BIZ
Adani denies cancellation of power purchase deal with SL
India’s Adani Group has denied the cancellation of its $440 million power purchase deal with Sri Lanka, terming the reports as “false and misleading”.
The media statement notes that “the Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies.”
“Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth,” it adds.
The media statement comes after the AFP reported that the new Sri Lankan government has revoked a power purchase agreement with Indian conglomerate Adani Group following allegations of corruption.
The deal had initially approved to purchase electricity at US$0.0826 per kilowatt hour from the proposed Adani wind power plant, which is to be built in the Northern region of Sri Lanka.
Several activists had challenged the agreement, arguing that smaller renewable projects were selling electricity at two-thirds the price of Adani, the AFP had further reported.
In addition, the project is also facing separate environmental concerns.
While President Dissanayake’s cabinet has revoked the 20-year deal power purchase deal signed in May 2024, it has not cancelled the project and has appointed a committee to review the project, the AFP reported, citing an official document and an energy ministry official.
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