Editor's Pick: Arm-twisting allegations on Adani Project in Sri Lanka

Adani Group’s renewable energy project in Sri Lanka’s Mannar district became the premise of an arm-twisting allegation on Friday. Ceylon Electricity Board’s (CEB) Chairman told a parliamentary panel that the project was given to the group after Indian Prime Minister Narendra Modi “pressured” President Gotabaya Rajapaksa. However, the CEB Chairman was quick to withdraw the remark stating that he had been “emotional”. The President’s office “vehemently’ denied the official’s remarks. It added that with the island nation facing an acute shortage of power, the President desired to expedite implementation of the mega power projects; however, no undue influence would determine the award. The development assumes particular significance for it came days after the country amended its electricity law, effectively eliminating competitive bidding. Critics from the country’s opposition benches stated the bidding process was being done away with “to make way” for projects such as the Adani Group’s, Colombo-based Sunday Times reported. In March 2022, the Adani Group entered into an agreement, with CEB, to set up renewable power projects in Sri Lanka’s Northern Province at a cost of $500 million. Opposition party Samagi Jana Balawegaya (SJB) had observed back then the Adani Group’s “backdoor entry” was disrupting competitiveness in the country’s electricity generation system. The opposition had unsuccessfully proposed a compromise amendment that would do away with tenders for projects less than 10 MW. “Due to non-transparent procurement and corruption, we pay so much more than necessary for electricity. One bright spot was the requirement for competition in renewable projects but had delays. Instead of fixing the problem they did away with the competition...,” Opposition lawmaker Harsha De Silva had tweeted about the amendment. The energy project is the Adani Group’s second major venture after it bagged a strategic port terminal deal in Colombo. Separately, India is also executing hybrid energy projects in three islands off Jaffna Peninsula. Though China had won the contract for the project, Sri Lanka opted India that take over after New Delhi raised concerns about the proximity of a Chinese project with its southern coast. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor‘s Pick and more. Click here The Hindu’s Editorials False equivalence: On Prophet remarks and Delhi Police FIRs Threat to democracy: On the U.S. House panel probe into January 6 Capitol riots The Hindu’s Daily Quiz Who is Pakistan’s new Minister of State for Foreign Affairs? Hina Rabbani Khar Miftah Ismail Shah Mahmood Qureshi Munir Akram To find out the answer and play the full quiz, click here [logo] Editor's Pick 13 JUNE 2022 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Arm-twisting allegations on Adani Project in Sri Lanka [Renewable Energy Image Photo] Adani Group’s renewable energy project in Sri Lanka’s Mannar district became the premise of an [arm-twisting allegation]( on Friday. Ceylon Electricity Board’s (CEB) Chairman told a parliamentary panel that the project was given to the group after Indian Prime Minister Narendra Modi “pressured” President Gotabaya Rajapaksa. However, the CEB Chairman was quick to withdraw the remark stating that he had been “emotional”. The President’s office “vehemently’ denied the official’s remarks. It added that with the island nation facing an acute shortage of power, the President desired to expedite implementation of the mega power projects; however, no undue influence would determine the award. The development assumes particular significance for it came days after the country [amended its electricity law]( effectively eliminating competitive bidding. Critics from the country’s opposition benches stated the bidding process was being done away with “to make way” for projects such as the Adani Group’s, Colombo-based Sunday Times reported. In March 2022, the Adani Group entered into an agreement, with CEB, to set up renewable power projects in Sri Lanka’s Northern Province at a cost of $500 million. Opposition party Samagi Jana Balawegaya (SJB) had observed back then the [Adani Group’s “backdoor entry”]( disrupting competitiveness in the country’s electricity generation system. The opposition had unsuccessfully proposed a compromise amendment that would do away with tenders for projects less than 10 MW. “Due to non-transparent procurement and corruption, we pay so much more than necessary for electricity. One bright spot was the requirement for competition in renewable projects but had delays. Instead of fixing the problem they did away with the competition...,” Opposition lawmaker Harsha De Silva had tweeted about the amendment. The energy project is the Adani Group’s second major venture after it bagged a strategic port terminal deal in Colombo. Separately, India is also executing hybrid energy projects in three islands off Jaffna Peninsula. Though China had won the contract for the project, Sri Lanka opted India that take over after New Delhi raised concerns about the proximity of a Chinese project with its southern coast. Was this newsletter forwarded to you? 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