Adani Group Refutes Claims of Deal Cancellation

In a recent development, the Adani Group has firmly denied reports suggesting the cancellation of a power purchase agreement with Sri Lanka, labeling such claims as "false and misleading." The group emphasized that their 484 MW wind power projects in Mannar and Pooneryn are still underway, despite facing challenges including a US indictment.

Background of the Controversy

This denial comes after an AFP report, citing sources from the Sri Lankan energy ministry, claimed that the nation had revoked the energy deal with the Adani Group. The report mentioned that a committee has been appointed to review the entire project, indicating that the government's decision to revoke the power purchase agreement does not equate to the cancellation of the project itself.

Investigation and Reassessment

Following bribery charges against the group's founder, Gautam Adani, in the United States, the Sri Lankan government has initiated investigations into Adani Group's local projects. The previous administration had agreed to purchase electricity at a rate of $0.0826 per kilowatt-hour from an Adani wind power project. However, the current administration has decided to halt the deal, as reported by AFP.

Adani Group's Commitment

Despite these challenges, the Adani Group has expressed its commitment to investing $1 billion in Sri Lanka’s green energy sector. The group views the government's move to reassess the tariff as a standard review process, especially under a new government, aimed at aligning with current priorities and energy policies.

US Charges Against Gautam Adani

In November of the previous year, US authorities 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), adding another layer of complexity to the group's international operations.