BD halves power buying from Adani
News Desk :
India’s Adani Power has stated that it has received no indication that the Bangladesh government is considering a review of its power purchase agreement.
Bangladesh has also halved its purchase of power from Adani Power, citing lower winter demand, according to a report by UK-based news agency Reuters.
Reuters reported that Bangladesh’s decision to reduce its power purchases from Adani is due to ongoing disputes over unpaid dues, amounting to hundreds of millions of dollars.
Under a 25-year contract signed in 2017 during the tenure of ousted Prime Minister Sheikh Hasina, Adani has been supplying power from a $2 billion plant in Jharkhand, India, which has two units, each with a capacity of about 800 megawatts.
A document seen by Reuters showed the plant operated at only 41.82 per cent capacity in November, the lowest for the year, with one unit shut down since 1 November.
Bangladesh is pushing to significantly lower the prices stipulated in its agreement with Adani, unless a court cancels the 25-year deal.
The High Court has ordered an expert committee to review the contract, under which Adani supplies power from the $2 billion coal-fired plant in eastern India.
The investigation is ongoing and is expected to conclude by February, at which point the court will issue its findings.
The investigation comes amid allegations against Adani Group founder Gautam Adani, who is accused by US authorities of involvement in a $265 million bribery scheme in India, charges he has denied.
Additionally, the company faces scrutiny in India, where a state is reviewing another power deal, and from France’s TotalEnergies, which has paused its investments in the group.
Adani Power is currently seeking over $800 million in unpaid dues from Bangladesh while continuing to supply 700-750 MW of power out of the plant’s 1,400-1,500 MW capacity.
Despite financial challenges, the company has remained in regular communication with Bangladesh’s Power Development Board (BPDB), which has assured Adani that outstanding payments will be settled soon.