The Ministry of Power and Energy in Sri Lanka has moved a Cabinet-level memorandum to categorise the wind power projects awarded to Adani Green Energy Ltd (AGEL) as a “government-to-government” deal between Colombo and New Delhi.
The 500 Mw wind energy projects would become part of the memorandum of understanding (MoU) signed between India and Sri Lanka for renewable energy development in the island nation during the visit of its President Ranil Wickremesinghe in July this year, said a report by The Sunday Times (Sri Lanka) on September 3.
The report cited the memorandum floated by Kanchana Wijesekera, minister of power and energy, Sri Lanka.
Last year, there was a political furore in Sri Lanka over the awarding of wind energy projects to AGEL without any tendering process. The Indian Opposition parties, too, had raised the issue.
The memorandum moved by the power and energy ministry justified lack of tender on the grounds that AGEL was recommended. “The proposal of Adani Green Energy Limited of India is referred to. Accordingly, the Cabinet of Ministers having considered this proposal and reviewed the content of the draft MoU has authorised all the parties to enter into the said MoU and to proceed with the required future action as specified methodology given in the MoU carrying out this project… It can be strongly justified to consider the said proposal of Adani Green Energy Limited of India under the category of government-to-government basis as required under the Electricity Act,” said the memorandum as cited by Sunday Times.
Officials in the Sri Lankan Ministry of Power and Energy, and state-owned Ceylon Electricity Board (CEB) could not be reached for an official comment. An e-mailed questionnaire by Business Standard to a spokesperson of the Adani group did not elicit any response until the time of going to press.
In June 2022, M M C Ferdinando, the then CEB chairman said, then President Gotabaya Rajapaksa had summoned him on November 24, 2021, and told him that “India’s Prime Minister (Narendra) Modi is pressuring him to hand over the project to the Adani group”. But the Office of the Sri Lankan President denied issuing any such authorisation and later, Ferdinando, too, retracted his statement and resigned as CEB chairman.
But the CEB later in a statement to a local business daily acknowledged the Indian government recommended AGEL for constructing wind power projects in the Mannar and Pooneryn regions of the country. The CEB also mentioned that under the MoU signed with AGEL, it was doing a feasibility study for wind power projects and project construction would happen only after a suitable tariff was negotiated with the company.
The Sri Lankan power ministry has also cited lack of government funds as the reason for awarding the projects to AGEL. The memorandum said: “The CEB has told the Ministry of Power and Energy that an infrastructure cost of $135 million could not be raised since most revenue has been diverted to priority areas after the economic crisis. As a result, minister Wijesekera sought the approval of the Cabinet of Ministers to consider the said proposal of AGEL of India for the construction of the 500 Mw wind plants in Mannar and Pooneryn by investing $ 442 million under the category of government-to-government basis.”
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