Adani Green Energy is seeking the initial money spent on the 484 MW Mannar wind farm and transmission project, which could lead to a legal conflict between the government and the company, legal experts say.
Adani Green Energy withdrew from the project after the current government did not agree to proceed with the project on the terms agreed upon by the previous government at the time the agreement was signed. The current government rejected the price agreed upon by the then government for one unit of electricity at the time the agreement was signed.
The project was to construct wind farms in the towns of Mannar and Punaring in the Northern Province and its investment was US$ 442 million.
The project was to add a minimum capacity of 350 MW to the country’s national electricity grid this year. In May, Adani Green Energy officials had written to the Ministry of Energy to reimburse the initial costs incurred for the research and investigation of the project in collaboration with the Sustainable Energy Authority of Sri Lanka.
Sources said that the Sustainable Energy Authority of Sri Lanka has now sought legal assistance in relation to certain costs claimed by Adani Green Energy.
The authority has strongly emphasized that the payment made for the energy license is non-refundable. However, sources said that the authority is ready to consider refunding other costs based on legal advice.