Adani Green Energy has reportedly decided to withdraw from the proposed $442-million wind power generation and transmission project in Sri Lanka after the new government sought to renegotiate tariffs,

India's Adani Green Energy said it will withdraw from two proposed wind power projects in Sri Lanka, according to a letter sent by the company to a Sri Lankan government agency. The Sri Lankan government said last month it has started talks with the Adani Group to lower the cost of power from the projects estimated to cost a total of $1 billion.

"Adani Green Energy has conveyed its Board's decision to respectfully withdraw from further engagement in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka," the

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.

Under the deal with Sri Lanka, Adani Green was to build two wind power projects in Mannar town and Pooneryn village, both in the northern province of the country. Adani’s renewable energy division had earmarked a $442 million investment for wind power generation and transmission in Sri Lanka.