Adani's wind power projects in North-East goes to courts

by admin
Aug 15, 2024

Sri Lanka's Supreme Court has scheduled October 14 for the hearing of five fundamental rights petitions filed against the wind power plant project undertaken by India's Adani Group in Mannar.

Less than three months after the Sri Lankan government entered into a 20-year power purchase agreement with India's Adani Green Energy, for two wind power stations developed by the company in the North-East, the case is now before Sri Lankan courts, with a date set for hearings that will determine the projects future.

The three-member bench of the apex court has ordered the respondents, including the government, the Board of Investment, and the Central Environmental Authority, to file their objections by September 13.

The Wildlife and Nature Protection Society is among the groups that filed the case. They claim that the decision by the Cabinet to categorize the Adani wind power project as a government-to-government venture between Sri Lanka and India is illegal and would cause significant harm to the migratory bird population and the environment. The society also challenged the action by Minister of Environment Pavithra Wanniarachchi to exclude the Viddathalathivu area in Mannar district from being designated as a forest reserve, a move made to facilitate the project. 
 
Earlier in June this month, the Public Utilities Commission of Sri Lanka (PUCSL) refused approval to award procurement of the 484 MW wind power plant in Mannar and Pooneryn to Adani Green Energy. The PUSCSL stated that the information submitted for approval by  Adani Green Energy SL Ltd. (AGESL), did not adequately assess the least cost and technical compatibility.  Environmentalists and Tamils in Mannar over the proposed construction of a Wind power project in Mannar and Pooneryn.

Minister of Power and Energy Kanchana Wijesekera posted on X (formerly Twitter) citing that the cabinet of ministers had decided to enter into a 20-year power purchase agreement with Adani Green Energy for the development of 484 megawatts of wind power in Mannar and Pooneryn. The Mannar (250 MW) and Pooneryn (234 MW) wind projects will be implemented with an investment of US$ 740 million.

A member of the opposition party Kabir Hashim, leveled accusations against the government for intentionally obstructing the process of opening financial bid proposals from companies vying for a contract to construct a separate 50-megawatt wind power plant.  According to Hashim, this obstruction was an attempt to conceal the potentially lower electricity prices that could result from an open and competitive bidding process. The opposition MP contrasted this situation to a previous 484MW wind plant project awarded to India's Adani Group through an inter-government agreement, bypassing a competitive tender process. India's ventures on the island have been dogged with opposition from within Sri Lanka and allegations of cronyism in India, particularly with the involvement of the Adani group. 

India's ventures on the island have been dogged with opposition from within Sri Lanka and allegations of cronyism in India, particularly with the involvement of the Adani group. 

Earlier this year, speaking to EconomyNext a Sri Lankan cabinet minister said that Sri Lankan officials disgruntled with India's involvement in Infrastrucutre projects had delayed the fast tracking of the Mannar Wind farm. 

“Some officials are stubborn and not helping to fast track the project,” a cabinet minister told EconomyNext when asked the reasons for the delay.

“Most of them are still living in the past and do not trust India despite this project has direct benefit to the country,” the Minister said referring to anti-Indian sentiment among Sri Lankan bureaucrats following India’s role in Sri Lanka’s 26-year armed conflict.

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