Sri Lanka assent to Adani Green’s $442 Million Wind Power Project
Crisis-hit Only a month after the Indian multinational conglomerate’s shares crashed as a result of the negative report on the Group by American short-seller Hindenburg, Sri Lanka has accepted a $442 million wind power project of Adani Green Energy.
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Adani Green’s $442 Million Wind Power Project in Sri Lanka: Key Points
- With the BOI’s clearance, the Adani Group’s total investments in the island nation have now surpassed $1 billion.
- It has already promised to contribute $700 million to a crucial Colombo port terminal, and construction on the West Container Terminal got under way in November 2022.
- Authorities in Sri Lanka have yet to publicly address whether the Group’s plummeting stock price in the wake of the Hindenburg claims would have an effect on its ambitious ambitions in the island nation’s investment-starved economy.
- The Group has denied any wrongdoing, despite the new report’s allegations that Adani Companies engaged in “brazen stock manipulation and accounting fraud scheme over the course of decades.”
- The projects of the Adani Group caused controversy in Sri Lanka last year, with government critics questioning the openness and due procedure used to approve the projects.
- Within months, Sri Lanka altered its energy legislation to do away with competitive bidding in the country’s energy industry after the Opposition accused the Group of making a “backdoor entry” into the sector.
Adani Green’s Wind Power Project: Controversy
In a related development at the time, a former Ceylon Electricity Board chairman resigned following his contentious claims that Prime Minister Narendra Modi had “pressured” former Sri Lankan President Gotabaya Rajapaksa to approve an Adani Group project in the island country. He later withdrew those claims. The claim was “vehemently refuted” by Mr. Rajapaksa.
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Adani Green’s Wind Power Project: India-Sri Lanka Energy Integration
The signing of the renewable energy project coincides with India and Sri Lanka’s increased efforts to integrate their energy networks, a notion that the neighbours first proposed more than ten years ago. Sri Lanka currently produces about 4,200 MW of electricity annually, and over the next two decades, it is anticipated that this demand would rise by about 5%. For the next three years, according to the authorities, they plan to add around 2,800 MW of renewable energy to the national grid.
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