India to supply LNG to Sri Lanka, connect power grids
What's the story
India has announced plans to supply liquefied natural gas (LNG) to Sri Lanka's power plants and connect the power grids of both nations.
The initiative was announced by Prime Minister Narendra Modi during a joint press briefing with Sri Lankan President Anura Kumara Dissanayake in New Delhi.
The announcement comes after Dissanayake's first official visit to India after winning the presidency in September and a parliamentary election last month.
Deal details
Petronet LNG signs deal to supply gas to Sri Lanka
Indian state-run company Petronet LNG has signed a five-year deal to provide LNG to Sri Lankan engineering firm LTL Holdings's power plants in Colombo.
The gas will be supplied via Petronet's terminal in Kochi.
Further, both countries have also discussed a multi-product petroleum pipeline and power grid connection between them.
Energy collaboration
India and Sri Lanka to jointly develop wind power projects
India and Sri Lanka agreed to jointly develop offshore wind power potential in the Palk Straits.
Adani Green Energy Ltd plans to invest $442 million in two wind power stations in the area.
Sri Lanka is currently reviewing this wind power project and a $553 million terminal project at the Colombo port, both linked to Adani Ports.
Legal dispute
Adani Group refutes bribery allegations
In November, US authorities accused Adani Group Chairman Gautam Adani and seven others of a $265 million bribery scheme to bribe Indian officials.
The group was also accused of misleading US investors while raising funds there.
However, the ports-to-power conglomerate has dismissed these allegations as "baseless" and said it would seek "all possible legal recourse."
Economic support
India's financial aid to Sri Lanka amid economic crisis
India provided over $4 billion in aid to Sri Lanka amid its acute financial crisis in 2022.
The two nations also inked a preliminary debt restructuring agreement along with other bilateral creditors Japan and China in July.
They will now conclude discussions on the bilateral memorandum of understanding (MoU) required for completing the debt restructuring process, a joint statement from India's External Affairs Ministry said.