Coal Tariff Dispute: BD hires UK law firm to represent BPDB in Adani Power
Staff Reporter :
Bangladesh has taken the dispute with Adani Power to the international legal arena by appointing a British law firm to represent the state-run Bangladesh Power Development Board (BPDB) in mediation proceedings over coal pricing and electricity tariffs.
Officials said on Friday that BPDB has engaged London-based legal firm 3VP to represent it before the Singapore International Arbitration Centre (SIAC). The firm is known for its expertise in commercial and financial litigation.
The dispute centres on Adani Power Limited, which supplies electricity to Bangladesh from its Godda power plant in India’s Jharkhand state. According to BPDB officials, the appointment follows arbitration proceedings initiated by Adani Power last year.
“Our decision to appoint the British firm came after Adani Power initiated arbitration at the Singapore International Arbitration Centre last year,” a Power Division official said. Adani Power has claimed around USD 485 million in unpaid dues related to disputed coal pricing and tariffs.
Under the power purchase agreement, mediation is a mandatory but non-binding step before the dispute can proceed to formal arbitration.
Bangladesh-based The Business Standard (TBS) reported that 3VP Chambers, led by King’s Counsel Farhaz Khan, has been advising a national review committee examining the Adani power deal for several months.
The development comes just days after the committee submitted its final report on power sector agreements signed during the tenure of former prime minister Sheikh Hasina’s Awami League government.
Bangladesh argues that Adani Power has been charging an inflated price for coal, resulting in higher electricity generation costs. Following the fall of the Hasina-led government on August 5, 2024, amid violent student-led protests, BPDB intensified efforts to renegotiate the contract with Adani.
Earlier this week, the national review committee said it had collected evidence that could support international legal action against Adani Power Limited.
“Financial transactions took place between Adani officials and Bangladeshi officials, and the committee is prepared to place this evidence before the court once legal proceedings begin,” interim government energy adviser Fouzul Kabir Khan said.
Officials confirmed that the evidence has already been handed over to the Anti-Corruption Commission (ACC) for further investigation.
The committee had submitted an interim report in November last year. At that time, the adviser said the interim government led by Muhammad Yunus could cancel the Adani power purchase agreement if it was proven that the contract was secured through corruption.
The review committee is chaired by retired High Court judge Moinul Islam Chowdhury. He previously told reporters that a separate report had also been prepared specifically on the power purchase deal with India’s Adani Group. Quoting an unnamed committee member, state-run news agency BSS reported: “We believe strong evidence of corruption will emerge once legal proceedings begin at home and abroad against Adani and several other companies linked to this corruption.”
However, some legal experts have urged caution. Prominent jurist Shahdeen Malik, who was consulted by the committee, warned the government to carefully assess the risks of terminating foreign contracts.
He said that while there may be legal grounds to cancel such agreements, international litigation could expose Bangladesh to compensation claims of up to USD 5 billion.
Adani Power currently supplies 1,600 megawatts of electricity to Bangladesh from its Godda plant. On the financial front, Bangladesh cleared its outstanding dues through a one-time payment of USD 437 million in June 2025, settling all bills up to March 31, 2025.
Earlier payment delays had prompted Adani Power to reduce electricity supply, but officials said full power delivery resumed after the outstanding dues were cleared.