Bangladesh Interim Government to Review Power Agreement with Adani

The interim government led by Muhammad Yunus in Bangladesh has announced plans to review the 2017 power purchase agreement with Adani Power Ltd.

The interim administration is set to closely examine the terms of the deal to determine if the electricity pricing is fair. An anonymous official reportedly stated, “We will investigate the contracts involving Indian businesses such as Adani, scrutinizing the terms and conditions to ensure that foreign companies adhere to local laws.”

This move follows a recent request from Gautam Adani, Chairman of the Adani Group, who sent a letter on August 27 seeking intervention from Yunus to address $800 million in unpaid dues owed by the Bangladesh Power Development Board (BPDB) for electricity provided by Adani Power.

Besides Adani Power, other Indian companies like PTC India, NVVL Ltd, and Semcorp Energy India also supply electricity to Bangladesh.

As of January 31, 2023, the Bangladesh Power Development Board reported a national power generation capacity of 22,700 MW. The country imports 1,160 MW from India, while the 2017 agreement mandates a purchase of 1,600 MW from Adani Power Ltd over 25 years.

Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power Ltd, confirmed last year that it would supply 1,496 MW of net capacity from its Godda USCTPP project to Bangladesh, as stipulated in the November 2017 agreement, via a dedicated 400 kV transmission line connected to the Bangladeshi grid.