Adani Green Energy Ltd. (AGEL) has decided to withdraw from two planned wind power projects in Sri Lanka, citing recent developments in project negotiations. The company communicated its decision to the Sri Lankan Board of Investment (BOI) through an official letter dated 12 February, The Economic Times reported.

Adani Green Energy Ltd told Sri Lanka’s Board of Investment on Wednesday that it would “respectfully withdraw” from the wind project following discussions with officials who indicated that fresh committees would be formed to “renegotiate the project proposal”.

Adani Green Energy Ltd withdrew from building from two renewable energy wind farms in Sri Lanka, the company said in a statement on Wednesday.

The company was to invest a total of USD 1 billion in generating electricity from wind at two projects and laying transmitting lines to take it to users.

Last month, the government said it had begun talks with the Adani Group to trim the cost of power from the projects, estimated to cost a total of $1 billion, to about $0.06 per kilowatt-hour (kWh) or less, versus an earlier figure of $0.08.

Adani Group is officially withdrawing from a $442 million wind power project in Sri Lanka after the government attempted to renegotiate the agreement for better energy rates.

Adani Green Energy Ltd. has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month, in the latest setback to the Gautam Adani-led conglomerate’s overseas ambitions.

Adani Group withdraws from a $442 million wind power project in Sri Lanka following government negotiations over energy costs.

The proposed wind projects in Mannar and Pooneryn, including transmission lines would have resulted in a $1 billion investment for Sri Lanka if it had happened.