Colombo, March 8 (ECONOMYNEXT) – The Sri Lanka representative institution of India’s Adani group had been given two weeks to respond, before alternatives are considered for a wind plant, a statement from the parliament quoting the energy minister said.
The matter had been raised at a consultative committee on energy ministry at the parliament.
A preliminary agreement was referred to the cabinet for reconsideration because the power purchase price was too high.
Then Adani has sent to letter to the Board of Investment, not the energy ministry. But the BOI had referred to the letter to the ministry. The BoI only gives tax concessions, not the power purchase agreement.
“Therefore, the Minister stated that a response regarding this matter is expected within two weeks following the letter that was sent,” a statement from the parliament said.
“He further emphasized that only if a negative response is received within these two weeks it will be necessary to move toward an alternative.
“Additionally, he stated that in the future, such projects will only be carried out through government-to-government (G2G) agreements and competitive procurement.”
Adani group had negotiated a rate of 8.26 US cents per unit of electricity. In Mannar competitive procurement had led to a price of 4.65 cents.
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