Energy Ministry to appoint committee to assess reimbursements for preliminary expenses by Adani

• Adani withdrew after differences with the NPP government over pricing

By Kelum Bandara 

The Cabinet has entrusted the Energy Ministry to appoint a committee to assess and determine reimbursements for initial costs sustained by India’s Adani Company following its withdrawal from the proposed investment projects in Sri Lanka, an official said. 

The company was to build wind power plant projects in the Mannar and Pooneryn towns in the Northern Province, investing $442 million. The project was expected to add at least 350 MW to the national grid. 

It, however, withdrew from the projects after differences with the National People’s Power (NPP) government over pricing. The projects were signed during the time of the previous government.

The company asked for reimbursement for the initial expenses it incurred here for the execution of the project. The letter was sent in May last year announcing withdrawal from the project and seeking reimbursement. 

The company sought reimbursement of expenses it made initially for research and investigation along with the Sustainable Energy Authority (SEA) in Sri Lanka. 

Reimbursements are, however, in the range of Rs.300-500 million to India’s Adani Company. 

Asked for a comment on the current status, an official who is familiar with the process said the Cabinet had assigned the Ministry to assess the reimbursements to be made.