'False and misleading': mystery surrounds fate of controversial Adani wind farms
Group owned by tycoon Gautam Adani races to deny claims Sri Lanka has cancelled deal for pioneering wind developments
Confusion swirls around the fate of pioneering wind power plans in Sri Lanka by the scandal-hit Adani Group, which today scrambled to deny reports its deal to develop two plants has been cancelled by the government there.
Sri Lanka’s Cabinet of Ministers chaired by President Anura Kumara Dissanayake overturned a decision from the previous government to hand the contract to renewables unit Adani Green, according to local media reports.
The cabinet decision was reportedly taken on 30 December but news of this only broke today.
The project was reportedly challenged on multiple grounds, including what is described as an arbitrary and excessive price of $82.6/MWh when local bidders were offering prices as low as $48.8/MWh.
Adani Green within hours hit back with a statement claiming the reports are incorrect.
The developer said the tariff was instead being subjected to a standard review process by Sri Lanka's new government "to ensure that the terms align with their current priorities and energy policies".
"Adani remains committed to investing $1bn in Sri Lanka’s green energy sector, driving renewable energy and economic growth," the statement added.
Controversies surround tycoon's plans
The two wind farms, slated for Sri Lanka’s northern coastal areas, reportedly entail around $740m of investment and are one of the most significant power projects in Sri Lanka to date.
Environmental organisations have also opposed the project due to alleged deficiencies in its Environmental Impact Assessment and the potential impact on migratory birds.
The contract was controversial when it was awarded in 2023, given accusations that Indian Prime Minister Narendra Modi had helped Adani Group’s billionaire owner Gautam Adani win business in its island neighbour.
The company’s wind power plans were at the centre of a bizarre incident in 2022 when a senior official at Sri Lanka’s electricity board told the country’s parliament he had been told by former president that was “pressured” by Modi to award the renewable deal to Adani.
The claim was immediately denied by the Sri Lankan government and the official within a few days had retracted his claim and resigned, saying he became “overemotional” when making the allegation. Adani also rejected the “baseless” claim.
Indian tycoon Adani is one of the richest men in Asia and has ambitions to be one of the world’s biggest green power players, however he has been repeatedly hit by controversy in recent years.
The news comes as Adani Green posted its most recent quarterly results, in which it reported that its net profit had risen by 85.2%.
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