Adani Green Energy, part of Indian billionaire Gautam Adani’s Adani Group, has decided to withdraw its wind power project in Sri Mannar, sources said.

Although most approvals have been obtained, the company cited delays including unresolved environmental clearances and an ongoing audiovisual device as reasons for the pullout.

The Board of Investment of Sri Lanka (BOI) has been informed of the decision to “appropriately withdraw” in order to remain open to future projects.

A new committee is set to renegotiate the terms, but official statements from the Adani Group and the Sri Lankan company are still awaited.

Adani Green Energy Limited (AGEL) has officially pulled out of the proposed $1 billion renewable wind farm and transmission project in Sri Lanka, citing the new government’s renegotiation efforts, Indian media reported today.

In a letter to the Board of Investment of Sri Lanka, Adani Green confirmed that after two years of negotiations and 14 rounds of discussions with the Ceylon Electricity Board (CEB) and government departments, the company has secured most of the concessions. However, a new Coordination Committee (CANC) and Project Committee (PC) appointed by the renegotiation board to coordinate the AGEL project have decided to pull out.

The project was intended to install 484 MW of wind farms in Mannar and Poonamallee and expand the 220 KV and 400 KV transmission networks to support Sri Lanka’s energy infrastructure. The company has already spent $5 million on pre-development activities and is making progress on clearance and land acquisition. However, unresolved environmental approvals in Mannar and an ongoing lawsuit in Sri Lanka have continued to delay the project.

Adani Green reaffirmed its willingness to see future opportunities in Sri Lanka if the team is invited to participate in new government projects, and this investment will remain in Sri Lanka.