India Wins Big Over China in Sri Lanka: Indian Company Secures Solar and Wind Projects After Chinese Firm’s Tender Cancellation
In a major turn of events, Sri Lanka has scrapped a crucial energy tender previously granted to a Chinese firm, handing the contract for three solar and wind hybrid power generation facilities to an Indian company. The project, initially supported by the Asian Development Bank (ADB), faced a temporary pause two years ago due to concerns raised by Bharat about Chinas involvement.
Revival of the Project replacing china
Recently, Sri Lanka’s energy ministry declared the revival of the project, now fully financed by an $11 million grant from the Indian government. The three facilities are set to generate a combined 2,230 kilowatts of renewable energy, encompassing 530 kW of wind power, 1,700 kW of solar power, 2,400 kWh of battery power, and a 2,500 kW diesel power system for the Delft, Analativu, and Nainativu islets, according to Sri Lanka’s Energy Minister Kanchana Wijesekara.
Key Player: U-Solar Secures Construction Contract
The construction contract has been awarded to U-Solar, an Indian renewables company based in Bengaluru. This development follows Sri Lanka’s withdrawal from a 2019 agreement with Bharat and Japan concerning the Colombo Port terminal in early 2021. Additionally, Sri Lanka approved a Chinese energy project in three islands near the Jaffna peninsula, leading Bharat to strongly object and propose full funding for energy projects through grants instead of loans.
Diplomatic Significance: Bilateral Energy Partnerships Take Center Stage
Bharat’s involvement underscores the importance of bilateral energy partnerships and the human-centric approach to development partnerships. The Indian envoy in Colombo, Santosh Jha, attended the signing ceremony, where the Sri Lanka Sustainable Energy Authority, the Government of Bharat, and U Solar Clean Energy Systems formalized the agreement. This marks the third Bharat-backed energy project in Sri Lanka’s north and east, following NTPC’s solar venture in Sampur town and the Adani Group’s renewable energy projects in Mannar and Pooneryn.
Regional Power Dynamics
The competition for major infrastructure projects in Sri Lanka has been a central focus for Bharat and China. Sri Lanka, grappling with its worst economic crisis since gaining independence in 1948, has become a battleground for influence between these two nations. India, concerned about China’s expanding presence, asserts its influence in a region it considers within its sphere.
India’s Strategic Move with Sri Lanka
China, being Sri Lanka’s largest bilateral creditor, holding about 10% of the nation’s $46 billion foreign debt during a 2022 government default, has increased tensions. In response to China’s influence, Bharat intervened to help Sri Lanka restructure its debt through policy measures. Cancelling the Chinese energy tender in favour of an Indian company is a significant strategic victory for Bharat in the ongoing battle for influence in Sri Lanka.
Strengthening Energy Initiatives and Geopolitical Dynamics
The conclusion highlights broader energy initiatives between Bharat and Sri Lanka, including discussions on power grid connectivity and a two-way oil pipeline. It emphasizes the significance of Bharat’s development partnership, with a portfolio reaching USD 5 billion, nearly USD 600 million of which is in grants alone. Overall, these recent developments not only signify a victory for Bharat in regional competition but also shed light on the evolving dynamics of geopolitical influence in South Asia.
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