Adani fiasco: Project intact; Govt. seeks tariffs renegotiation

The government has taken no decision to revoke the Adani Wind Power projects in Mannar but has informed Indian officials that the tariff rates offered by the Indian conglomerate are too high whilst other companies have quoted far lower tariffs, the Daily Mirror learns.

In their recent visit to India, President Anura Kumara Dissanayake and Foreign Minister Vijitha Herath held discussions with Indian officials on the Adani Wind Power project during which the Sri Lankan side had conveyed concerns over the high tariff rates quoted by the Adani group.

Minister Herath told the Daily Mirror that the Indian officials had responded by saying they would be open to discussions over the project with the Sri Lankan government.

Minister Herath said that while a court case was presently ongoing over the project, the AG was representing the government in the case and the government therefore awaited the final decision of the court.

The next court hearing over the Adani case is in May.

“Therefore we have not taken any decision to revoke the project as we await the final verdict of the court. Right throughout our main concern has been the high tariff rates and we have conveyed this to the Indian side. There has been no decision to revoke the project,” Minister Herath said.

Meanwhile, Energy Minister Kumara Jayakody said that he presented a note to the Cabinet to brief the ministers about the current status with the intent to review the project in line with the policy of the new government.

Otherwise, he said there is no decision to cancel the project. He said the final decision on the project would depend on the ruling of the ongoing court case.

During the election campaigns last year, the NPP talked about the Adani project. In May 2024, the previous government had entered into an agreement to procure electricity at a rate of US$0.0826 per kilowatt from an Adani wind power facility in Mannar.

The proposed construction of Adani's 484-megawatt wind power plant in the Mannar and Pooneryn coastal areas is facing a separate Supreme Court challenge over environmental concerns.