‘Misleading’: Adani Group denies report on Sri Lanka revoking power purchase deal

NEW DELHI: Adani Group has denied the reports of cancellation of power purchase deal with Sri Lanka and called it “false and misleading”. It categorically mentioned that the projects were still on amid US indictment.
“Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the project has not been cancelled,” Adani Group said in a statement.

This came after AFP reported citing Sri Lankan energy ministry sources that the island nation had revoked the energy deal with the billionaire group.
“The government has revoked the power purchase agreement, but the project is not cancelled. A committee has been appointed to review the entire project,” the source told AFP.
Sri Lankan President Anura Kumara Dissanayake’s administration has launched investigations into Adani Group’s local projects following bribery charges against founder Gautam Adani in the United States late last year.
The previous administration had agreed in May 2024 to purchase electricity at $0.0826 per kilowatt-hour from an Adani wind power project planned for the island’s northwest. However, a senior energy ministry official confirmed that Dissanayake’s cabinet has decided this month to halt the deal, AFP reported.
Meanwhile, the Adani Group said that the country’s recent move to reassess the tariff approved in May 2024 was a routine part of the review process, especially under new government.
“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 said.
US authorities, in November last year, charged Gautam Adani and his associates with paying over $250 million in bribes to Indian officials to secure solar energy contracts for Adani Green Energy Ltd (AGEL).