India will set up hybrid power projects in three Islands off Jaffna, effectively replacing the Chinese venture cleared by Colombo last year.
The MoU for the project was among those signed during a meeting between visiting External Affairs Minister (EAM) S. Jaishankar and his Sri Lankan counterpart G.L. Peiris late on Monday. It is the third Indian energy project coming up in Sri Lanka’s north and east, after the recent agreements for National Thermal Power Corporation’s solar venture in the eastern Sampur town, and the Adani Group’s renewable energy projects in Mannar and Pooneryn in the north.
In January 2021, Sri Lanka’s Cabinet decided to award renewable energy projects in Nainativu , Delft or Neduntheevu , and Analaitivu islands to Chinese company Sinosoar-Etechwin, following an Asia Development Bank-backed competitive bid. India was quick to express concern to the Sri Lankan side over the Chinese project coming up in the Palk Bay, barely 50 km off Tamil Nadu. New Delhi offered to execute the same project with a grant rather than a loan. Unable to pick a side for over a year, Colombo kept the project in suspension, apparently putting off China. In a recent press briefing, the Chinese Ambassador in Colombo voiced rare criticism over the projects being interrupted for “unknown reasons”, and said it sent out the wrong message to potential foreign investors.
