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.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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.

Next Story
Infrastructure Transport

Banihal Bypass Started, Milestone Achieved By NHAI On NH44

The National Highways Authority of India (NHAI) has achieved another milestone on the Jammu-Srinagar four-lane highway after nearly four years of construction. The NHAI has completed the Banihal Bypass, and one side of the bypass was opened for traffic following a post by Union Minister for Road Transport and highways Nitin Gadkari on his official X handle. Traffic has been allowed from Jammu to Srinagar on one tube of the much awaited Banihal bypass.Project head of Banihal bypass from NHAI Kumar Jainendra told Greater Kashmir that the full public cooperation and support from locals was u..

Next Story
Infrastructure Transport

Hyderabad: Rs 70 Bn Sanctioned For Road Infra Works

As part of the Hyderabad City Innovative and Transformative Infrastructure (H-CITI) program the state government sanctioned Rs 70 billion for 38 works, including the construction of flyovers, underpasses, and road-over-bridges (ROB) to ease the traffic in various parts of Hyderabad and its nearby municipalities. As part of the Strategic Road Development Programme (SRDP) initiated by the previous BRS government, several flyovers and road infrastructure projects were taken up mostly under the limits of the Greater Hyderabad Municipal Corporation (GHMC). Out of the 42 works under SRDP, 36 projec..

Next Story
Infrastructure Transport

India's Second Cable-Stayed Bridge to Be Built In Howrah

Eastern Railways is set to construct India’s second cable-stayed steel deck bridge in Howrah, aimed at easing traffic congestion on the Howrah Bridge. The new bridge will span the existing GT Road route, linking Howrah Station with the Howrah Bridge. The new structure is a response to the rising volume of vehicular traffic, which has been placing significant strain on the 75-year-old Howrah Bridge, leading to regular traffic jams and delays.The new cable-stayed bridge will feature a four-lane design and will measure 134 m in length, an expansion from the existing 60 meters of the Chandmari B..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000