Adani Green Energy Ltd’s share price rose 2 percent on Tuesday to trade above Rs 935 on the NSE, following a news report that the company will withdraw from its proposed wind power generation and transmission project in Sri Lanka, potentially ending the overhang about the project viability.
Bloomberg reported citing a letter written by Adani Green Energy that the company has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month.
The $442 million, 484 MW wind farm project in Mannar and Poonerin was approved by Sri Lanka’s Board of Investment in early 2023, with an agreement signed to supply power at 8.26 cents per kWh for 20 years. However, Sri Lanka’s new government has sought to renegotiate the power purchase agreement, reportedly aiming to bring the tariff under 6 cents per unit.
In January 2025, when reports emerged that Sri Lanka had revoked Adani Green’s project, the Adani Group called the claims "false and misleading." The government, however, maintained that it would not proceed with the purchase price agreed upon by the previous administration.
Aruna Kulatunga, President of the EOI Project Developers Association, a body of 47 companies evaluating energy project bids in Sri Lanka, recently said that the tariff offered by Adani Green was considered high compared to local bidders.
Adani Green stock has lost nearly half its value in the last six months, with its current market capitalisation at Rs 1.5 lakh crore.
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