Colombo: The Sri Lankan government on May 7 approved an agreement with Gautam Adani-led Adani Green Energy for the development of wind power stations in Mannar and Poonerin, according to a report by Reuters.

The Sri Lankan cabinet has also given its nod to a power purchase agreement for 20 years, the report said. Under the power purchase agreement, the company will be paid 8.26 cents per kilowatt-hour (kWh).

Colombo has appointed a negotiating committee, approved by the Cabinet, to review the project proposals offered by the Indian company.

The green energy company had won the nod in February last year to invest USD 442 million and develop the 484 megawatts wind power plants in the two towns in Northern Sri Lanka, the report said.

The deal marks a growing presence of the group in the island nation. It is involved in developing a USD 700 million terminal project at Colombo, which is Island nation's largest port.

The South Asian nation faced an economic crisis in 2022 and faced severe power blackouts and fuel scarcity. Since then, the cash-strapped nation has been trying to fast-track renewable energy projects to hedge against surges in imported fuel costs.

The stock of the green power major, however, traded 0.54% down at INR 1,755.8 on the BSE around 10:39 AM on May 7.

On May 3, the company reported a 39% drop in its net profit at INR 310 for the quarter ended March 31, compared to INR 507 crore a year ago.

The Adani Group firm's revenue declined 6% to INR 2,806 crore in the fourth quarter against INR 2,977 crore in the same period last year.

Adani Green Energy Limited (AGEL) is a renewable energy company, headquartered in Ahmedabad, India. It is majority-owned by Indian conglomerate Adani Group and minority-owned by TotalEnergies. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.

Article Source - Reuters