+
Bangladesh Seeks to Renegotiate Adani power Deal if Court Doesn't Cancel
POWER & RENEWABLE ENERGY

Bangladesh Seeks to Renegotiate Adani power Deal if Court Doesn't Cancel

Bangladesh seeks a significant reduction in prices under a power purchase agreement with India's Adani Group, unless the deal is annulled by a court, which has called for an investigation into the 25-year contract, according to Bangladesh's de facto energy minister in an interview with Reuters on Sunday.

Adani Group founder Gautam Adani is already facing allegations from US authorities regarding his involvement in a $265 million bribery scheme in India, charges he has denied. Meanwhile, one Indian state is reviewing its power deal with the group, and France's TotalEnergies has paused its investments.

In Bangladesh, following an appeal from a lawyer requesting the potential cancellation of the power deal, the High Court last week ordered the formation of a committee of experts to examine the contract under which Adani provides power from a $2 billion coal-fired plant in eastern India. The investigation is expected to conclude by February, when the court will issue its order.

The deal, signed in 2017 by Adani and a government entity under the administration of Prime Minister Sheikh Hasina, who was ousted this year following a popular uprising and corruption allegations, initiated supply from the 1,600 megawatt plant last year. The plant, which uses costly imported coal, now meets about a tenth of Bangladesh's power consumption.

Bangladesh's power and energy adviser, Muhammad Fouzul Kabir Khan, stated in an interview that the contract should be renegotiated in case of anomalies, but cancellation should only occur in the event of irregularities such as corruption or bribery. He emphasized that any actions would be based on the findings of the court-ordered investigations.

He also mentioned that certain issues, like Bangladesh not benefiting from some Indian tax exemptions related to the power plant, have already been raised with Adani and could form part of the basis for a potential renegotiation of the deal.

Bangladesh seeks a significant reduction in prices under a power purchase agreement with India's Adani Group, unless the deal is annulled by a court, which has called for an investigation into the 25-year contract, according to Bangladesh's de facto energy minister in an interview with Reuters on Sunday. Adani Group founder Gautam Adani is already facing allegations from US authorities regarding his involvement in a $265 million bribery scheme in India, charges he has denied. Meanwhile, one Indian state is reviewing its power deal with the group, and France's TotalEnergies has paused its investments. In Bangladesh, following an appeal from a lawyer requesting the potential cancellation of the power deal, the High Court last week ordered the formation of a committee of experts to examine the contract under which Adani provides power from a $2 billion coal-fired plant in eastern India. The investigation is expected to conclude by February, when the court will issue its order. The deal, signed in 2017 by Adani and a government entity under the administration of Prime Minister Sheikh Hasina, who was ousted this year following a popular uprising and corruption allegations, initiated supply from the 1,600 megawatt plant last year. The plant, which uses costly imported coal, now meets about a tenth of Bangladesh's power consumption. Bangladesh's power and energy adviser, Muhammad Fouzul Kabir Khan, stated in an interview that the contract should be renegotiated in case of anomalies, but cancellation should only occur in the event of irregularities such as corruption or bribery. He emphasized that any actions would be based on the findings of the court-ordered investigations. He also mentioned that certain issues, like Bangladesh not benefiting from some Indian tax exemptions related to the power plant, have already been raised with Adani and could form part of the basis for a potential renegotiation of the deal.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code