Sinosar-Etechwin, a chinese company, has been awarded USD 12 million worth contrat to to set up hybrid wind and solar energy projects off the northern Jaffna peninsula of Sri Lanka, reports The Indian Express.

This project on three Sri Lankan islands, Delft, Nainativu and Analativu, is located just 45 km from Rameswaram in Tamil Nadu. It will be implemented as a joint venture with the state-owned Ceylon Electricity Board.

It is reported that India had lodged a strong protest with the Sri Lankan government on the contract to the Chinese company.

The Sri Lankan sources said that the contract to this project funded by Asian Development Bank (ADB) had been awarded after inviting international bids and the Indian bid was not competitive.

This development has come to light just days after the Gotabaya Rajapaksa government in Sri Lanka has scrapped an agreement to develop a strategic East Container Terminal (ECT) at the Colombo port with help from India and Japan.

India protested the move strongly with its High Commission in Colombo saying that “all sides should abide by the existing understandings and commitment”.

New Delhi considers the Indian Ocean region to be its strategic backyard and has expressed its concerns over Beijing’s economic and political influence over Colombo.

China, on the other hand, considers Sri Lanka to be a critical link in its massive Belt and Road Initiative and has provided billions of dollars in loans for its projects over the past decade. The projects include a seaport, airport, port-city, highways and power stations.