Adani Group Denies Reports of Sri Lanka Revoking Power Purchase Agreement

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Adani Group Denies Reports of Sri Lanka Revoking Power Purchase Agreement

The Adani Group, under the leadership of Gautam Adani, has dismissed reports that Sri Lanka revoked a power purchase agreement with them due to corruption allegations. The misinformation stemmed from an investigation conducted by the Sri Lankan government regarding Adani's local projects, following allegations of bribery and non-disclosure of payments.

In response to the news report, the Adani Group released a statement to clarify the situation. They emphasized that the reports of cancellation of their wind power projects in Mannar and Pooneryn were false and that the power purchase agreement had not been revoked. The group highlighted that the Sri Lankan Cabinet's decision to review the tariff approved earlier was a routine process, especially considering a new government's priorities and energy policies, and reaffirmed their commitment to investing $1 billion in Sri Lanka's green energy sector. Additionally, Adani Green Energy's stock experienced a decline after the news emerged, reaching a daily low, but closed with a slight decrease. The former government in Sri Lanka had previously agreed to purchase electricity from Adani's wind power facility at a specific rate, with opposition from activists advocating for smaller renewable energy projects with lower costs. The development of Adani's wind power plant in Mannar and Pooneryn faces legal challenges on environmental grounds, currently under scrutiny in the Supreme Court.