India’s Adani Green Energy and the government authorities are poised to be involved in a legal wrangle over the reimbursement of initial expenses made by the company before it withdrew from the renewable energy projects in Sri Lanka.
The company withdrew from the project after the Sri Lankan government ,led by the National People’s Power (NPP) was unprepared to press ahead with it according to terms agreed upon by the previous government which struck the agreement.
The company took that decision after Sri Lanka, under the new government led by the National People’s Power ( NPP), sought to lower the cost of the power generated. The NPP government disagreed with the cost agreed upon by the last government which struck the project with Adani. The company was to build a wind power plant project in the Mannar and Pooneryn towns in the northern province, investing $442 million.
The project was expected to add at least 350 MW to the national grid by 2025.The company authorities sent a letter to the government authorities in May this year asking for reimbursement of expenses it made initially for research and investigation along with the Sustainable Energy Authority (SEA) in Sri Lanka.
The Sustainable Energy Authority of Sri Lanka is currently in the process of seeking legal advice about reimbursements sought by the company for some expenses. The Authority is adamant that it cannot reimburse payment made for the energy permit. It is, however, prepared to consider reimbursement of other expenses depending on legal advice.
An informed source said that legal cases might entail due to differences over reimbursements following legal advice.