Bangladesh Urges Adani Power to Resume Fully Electricity Supply

Bangladesh Urges Adani Power to Resume Fully Electricity Supply

Bangladesh urges Adani Power to resume fully electricity supplies from its 1,600-megawatt plant in Jharkhand, India. The plant, which has two units of 800 megawatts each, sells power exclusively to Bangladesh under a 25-year contract signed in 2017.

Reduced Supply and Payment Issues

Adani Power halved its supply to Bangladesh on October 31 due to delayed payments caused by the country’s foreign exchange shortage. One unit of the plant was shut down on November 1, reducing operations to about 42% capacity.

To settle outstanding dues, the state-run Bangladesh Power Development Board (BPDB) has been making monthly payments of $85 million to Adani and has now asked for full power restoration. However, technical issues have delayed the synchronization of the second unit.

Pricing Dispute and Contract Review

A dispute over how power tariffs are calculated has led to further tensions. Adani’s power is about 55% more expensive than the average cost of all Indian electricity sold to Bangladesh. A Bangladesh court has ordered an expert committee to review the contract, with results expected soon, potentially leading to renegotiations.

Allegations Against Adani

Bangladesh’s interim government has accused Adani of breaching the power purchase agreement by failing to transfer tax benefits from its coal-fired power plant in India. The government is also using recent U.S. bribery allegations against Adani executives as leverage to push for a revised deal.

Next Steps

The BPDB and Adani officials are expected to meet virtually to resolve the ongoing issues. The situation highlights Bangladesh’s economic and energy challenges, exacerbated by financial distress and political uncertainty.

“Bangladesh Urges Adani Power to Fully Restore Supply”