Colombo, Jun 13: A top Sri Lankan official, who claimed before a parliamentary panel that Prime Minister Narendra Modi allegedly influenced President Gotabaya Rajapaksa to award a wind power project to the Adani Group in this island nation, resigned on Monday, a day after retracting his earlier statement.

The resignation of MMC Ferdinando, the chairman of state-owned power entity Ceylon Electricity Board (CEB), has been accepted, energy minister Kanchana Wijesekara said on Monday.

Ferdinando, during a hearing of the Committee On Public Enterprises (COPE) on Friday, said that President Rajapaksa had summoned him after a meeting in November last year and told him that the wind power project be awarded to the Adani Group of India's billionaire Gautam Adani as Prime Minister Modi had urged him to do so.

However, President Rajapaksa on Saturday categorically denied Ferdinando's statement before the parliamentary panel.

Rajapaksa tweeted: I categorically deny authorisation to award this project to any specific person or entity .

On Sunday, Ferdinando wrote to the COPE chair in Parliament Professor Charitha Herath that he was withdrawing his comment, saying it had been done under stress, and that he was not influenced by either President Rajapaksa or the Indian High Commission here to retract it.

There was no immediate reaction from the Government of India on the issue.

Meanwhile, the Adani Group issued a statement on Monday on the controversy, saying: "Our intent in investing in Sri Lanka is to address the needs of a valued neighbour. As a responsible corporate, we see this as a necessary part of the partnership that our two nations have always shared".

We are clearly disappointed by the detraction that seems to have come about. The fact is that the issue has already been addressed by and within the Sri Lankan Government, a Spokesperson of the Adani Group said in the statement.

The 500 MW wind power plant by the Adani Group in Mannar caused a storm when the CEB engineers threatened to strike over the government's amendment to the CEB Act of 1989.

The main Opposition Samagi Jana Balawegaya leader Sajith Premadasa has threatened to take Ferdinando to the parliamentary privileges committee for lying.

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Ahmedabad (PTI): The Gujarat ATS and Rajasthan Police jointly busted an illegal alprazolam-making factory in the neighbouring state and arrested three men with 22 kg of psychotropic substances and the drug, valued at Rs 30 lakh, officials said on Monday.

The accused had rented a pharmaceutical unit to manufacture the drug, prescribed for anxiety and panic disorders, in an industrial area near Bhiwadi town of Rajasthan.

Alprazolam falls under the purview of the Narcotic Drugs and Psychotropic Substances (NDPS) Act because of its misuse as a psychotropic substance, according to an official release.

Acting on specific inputs, personnel of Gujarat ATS and Rajasthan Police raided the unit on Sunday, leading to the arrest of Anshul Shastri, Akhilesh Maurya, and Krishnakumar Yadav.

Police recovered 5 kg of alprazolam and 17 kg of a mixture of other psychotropic substances used as raw material, taking the total seizure to 22 kg, valued at around Rs 30 lakh, said the release.

The substances were allegedly being manufactured illegally without any authorisation or licence, and were meant for sale in the illicit drug market.

A preliminary investigation suggested that one of the arrested accused, Shastri, was involved in sourcing raw materials required for manufacturing alprazolam through his trading firm, according to the release.

Shastri and his business partner Maurya took a pharma unit in Bhiwadi on rent with the help of Yadav, a chemist versed in the production process, it said.

Rajasthan Police registered an FIR at the Bhiwadi sector-3 police station following the raid under relevant sections of the NDPS Act and are investigating further.