Adani Group Abandons Wind Power Project in Sri LankaIndo-US conglomerate, Adani Group, under the leadership of billionaire Gautam Adani, recently made the decision to withdraw from its $440mn wind power projects in Sri Lanka. This move came in light of the new Sri Lankan government initiating a review of the agreed tariffs for the project, prompting Adani Green Energy unit to terminate its involvement as Sri Lanka expressed its intention to renegotiate the projects and revisit the 20-year tariff agreement.
Key Points:
- The Adani Group communicated its decision through a letter to Anura Kumara Dissanayake’s administration, emphasizing its respect for Sri Lanka’s sovereignty while gracefully withdrawing from the project.
- Adani outlined that the company had already invested approximately $5mn in preliminary development activities for the wind farms.
- Previously, Adani had informed Sri Lanka of its intention to withdraw from the 484-megawatt projects should the government fail to determine new and reasonable tariffs by the end of March. This withdrawal was later confirmed by Adani Green Energy in an official statement.
This development came on the heels of similar occurrences in neighboring Bangladesh where Adani had been engaged in power projects signed by past regimes. The current Bangladeshi government, led by Muhammad Yunus, is reportedly reevaluating energy agreements inked by the former Sheikh Hasina administration, including a contract for Adani’s Godda coal-fired power plant intended to supply electricity to India.
- Adani had experienced challenges in Bangladesh as well, where the flow of electricity from the Godda plant was halved amid disputes over overdue payments.
- Sources revealed discrepancies in the outstanding amount, with Adani claiming nearly $800mn while Bangladesh argued it was around $550mn.
- Adani’s global ventures faced additional hurdles following allegations of a bribery scheme tied to solar power contracts in India, a charge which the group vehemently denied.
Despite these setbacks, Adani remained steadfast in its commitment to persist with the port terminal project in Colombo, indicating a strategic pivot in their operational outlook as they tackle challenges and pivot towards sustainable growth.
In light of these developments, it is clear that Adani Group’s strategic realignment underscores the evolving landscape of international business and underscores the need for agility and adaptability in navigating complex global markets. The story of Adani Group’s ventures in Sri Lanka and Bangladesh serves as a poignant reminder of the intricate interplay between geopolitics, commerce, and ethics in today’s interconnected world.
