Adani Green Energy Shares Fall as Reports Emerge of SL Cancelling Power Purchase Deal

Adani Green Energy’s share price fell as reports emerged of Sri Lanka cancelling the conglomerate’s over $400 million project.

Adani Green Energy shares opened the day at Rs 1039.45 after having closed at Rs 1021.45. The stock gained initially and reached a day’s high of Rs 1065.45.

However, Adani Green Energy shares fell after the news of Sri Lanka cancelling the power purchase deal to hit the day’s low of Rs 1,008, crashing over 6% from the day’s high.

The island nation cancelled the power purchase agreement with the Adani Group following an investigation into allegations by the US that executives from the conglomerate paid bribes to win power supply contracts, as reported by AFP and published in the Economic Times on Friday.

However, the Adani Group refuted the report that its power purchase deal had been cancelled by Sri Lanka.

“Reports that Adani’s 484 MW wind power projects in Mannar and Pooneryn have been cancelled are false and misleading. We categorically state that the project has not been cancelled,” said an Adani Group spokesperson.

The Adani Group said that the Sri Lankan Cabinet’s decision on January 2, 2025 to revisit the tariff approved in May 2024 was a routine review process.

“The Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies,” the spokesperson said.(India Today)