World
Indian billionaire Gautam Adani, who operates businesses not just in India but globally, has suffered a setback as Adani Green Energy has withdrawn from two power projects in Sri Lanka. The company officially communicated this decision to the Sri Lankan government in a letter.
Reasons for Project Withdrawal
Adani Green Energy had initially planned to develop wind energy projects in Sri Lanka worth $1 billion (approximately Rs 8,500 crore). However, due to delays in environmental approvals and an ongoing case in the Sri Lankan Supreme Court, the company has now backed out of the project.
Respecting Sovereignty
In an official statement, Adani Green Energy mentioned that a cabinet-appointed committee had been set up to renegotiate the project. However, the company has respectfully withdrawn from the project while honoring Sri Lanka’s sovereign rights.
Investment Already Made
Before pulling out, Adani Green Energy had already spent around $5 million on the project. Under the original agreement, the company was set to support Sri Lanka’s energy infrastructure by expanding 220 KV and 400 KV power transmission networks and setting up 484 MW wind energy plants in Mannar and Pooneryn. However, the delays in environmental clearances and legal complications forced Adani to reconsider its investment.
This withdrawal marks a major setback for Adani’s expansion plans in Sri Lanka’s renewable energy sector.
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