Adani Green Energy Ltd (AGEL) has withdrawn from its two proposed wind power projects in Sri Lanka after the government sought to renegotiate tariffs.

“AGEL has conveyed its board’s decision to respectfully withdraw from further engagement in the RE (renewable energy) wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires,’’ a spokesperson from AGEL said on

Last month, the Lanka cabinet led by president Anura Kumara Dissanayake had reportedly revoked the decision made by the previous Ranil Wickremesinghe-government in June to award the 484mw of wind power plants in Mannar and Pooneryn to Adani Green Energy SL Ltd, an arm of AGEL.

The project was reportedly challenged on various grounds, including the rate of $0.0826 per kilowatt-hour at which the power was being purchased.

The new Lankan government wanted to renegotiate the terms and bring down the cost below $0.06 per unit. Since this was not acceptable to the Adani group, AGEL has decided to walk away from the project.

Moreover, environmental organisations, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd, were against the project alleging deficiencies in environmental impact assessment. They had also cited that Mannar is an important habitat for migratory birds.

A Reuters report on Thursday said AGEL had written a letter to the Sri Lankan Board of Investment where it cited the constitution of a new cabinet-appointed panel to renegotiate the project as the reason for their withdrawal.

“It was learnt that another cabinet-appointed negotiations committee and project committee would be constituted to renegotiate the project proposal. This aspect was deliberated at the board of our company, and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project,’’ the letter reportedly said.