The Sri Lankan government on May 7 approved an agreement with Gautam Adani-led Adani Green Energy for the development of wind power stations in Mannar and Poonerin, according to a report by Reuters.
The Lankan cabinet has also given its nod to a power purchase agreement for 20 years, the report said. Under the power purchase agreement, the company will be paid 8.26 cents per kilowatt-hours (kWh).
Colombo has appointed a negotiating committee, approved by the Cabinet, to review the project proposals offered by the Indian company.
The green energy company had won the nod in February last year to invest $442 million and develop the 484 megawatts wind power plants in the two towns in Northern Sri Lanka, the report said.
The deal marks a growing presence of the group in the island nation. It is involved in developing a $700 million terminal project at Colombo, which is Island nation's largest port.
The South Asian nation faced an economic crisis in 2022 and faced severe power blackouts and fuel scarcity. Since, then the cash-strapped nation has been trying to fast-track renewable energy projects to hedge against surges in imported fuel costs.
Also read: Adani Green Q4 results: Net profit falls 39% to Rs 310 cr
The stock of the green power major, however, traded 0.54 percent down at Rs 1,755.8 on the BSE around 10:39am on May 7.
On May 3, the company reported a 39 percent drop in its net profit at Rs 310 for the quarter ended March 31, compared to Rs 507 crore a year ago.
The Adani Group firm's revenue declined 6 percent to Rs 2,806 crore in the fourth quarter against Rs 2,977 crore in the same period last year.
With inputs from Reuters
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
