Adani Green Energy’s share price fell as reports emerged of Sri Lanka cancelling the conglomerate’s over $400 million project, India Today reported.
Adani Green Energy shares opened the day at Rs 1039.45 after having closed at Rs 1021.45. The stock gained initially and reached a day’s high of Rs 1065.45.
However, Adani Green Energy shares fell after the news of Sri Lanka reportedly cancelling the power purchase deal to hit the day’s low of Rs 1,008, crashing over 6% from the day’s high, India Today’s report added.
Earlier today, local media reported that the National Peoples’ Power (NPP) government has decided to revoke the contract awarded to India’s Adani Group for the 484 MW of wind power plants in Mannar and Pooneryn signed under the Ranil Wickremesinghe regime in June last year.
When inquired by Newswire, a Senior Government official said the decision was taken as the Adani Green Energy SL Ltd has proposed US cents 8.26 per kilowatt hour while local bidders have offered prices as low as 4.88 US cents.
He further said that as the revocation requires a standard procedure, the Cabinet of Ministers has appointed a committee to review the agreement and submit recommendations.
He said the newly appointed committee is tasked with reviewing issues surrounding the contract, such as government-to-government and environmental.
Stating that the committee has commenced its process to review the contract, he said that based on the committee’s recommendations, the government will take a final decision on the Adani project.
In February 2023, Sri Lanka’s Board of Investment (BOI) approved Adani Green Energy’s $442-million wind power project, with plants planned for Mannar and Pooneryn in Northern Sri Lanka.
Since then, the project faced legal challenges, with its details being subjected to Supreme Court review.
Adani Group, led by Indian billionaire Gautam Adani, is also involved in the development of a $700-million container terminal at the Colombo Port, adding to its growing presence in Sri Lanka. (Newswire)