India’s Adani Group has decided to pull out of its $440mn wind power projects in Sri Lanka after the new government in Colombo launched a review of the tariffs agreed for the deal.

Energy giant, Adani has decided to withdraw from its proposed $ 1 billion wind power project based on the build-own-operate (BOO) model in Mannar and Pooneryn. The move follows the President Anura Kumara Dissanayake administration deciding to renegotiate the previously approved project for a lower cost.

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.

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

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

Environmental organisations, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd, were against the project alleging deficiencies in environmental impact assessment

Adani Green Energy has withdrawn from two wind power projects worth $1 billion in Sri Lanka after the government sought to reduce the tariff. The projects, set to be completed by 2026, were scrutinized following a political change.