Bangladesh Urges Adani Power to Renegotiate Energy Deal

Bangladesh’s interim government has accused Indian energy supplier Adani Power of breaching a multi-billion-dollar agreement by withholding tax benefits granted to a power plant central to the deal, Krishna N. Das reported for Reuters.

Since energy deliveries began in July 2023, Bangladesh has fallen behind on payments to Adani Power. I Photo: Adani Power

In 2017, Adani Power, owned by billionaire Gautam Adani, signed an agreement to supply electricity to Bangladesh from its coal-fired power plant in eastern India.

Documents and letters reviewed by Reuters, as well as interviews with six Bangladeshi officials, suggest the deal, awarded without a tender by then-Prime Minister Sheikh Hasina, costs Bangladesh significantly more than its other coal-based power agreements.

Since energy deliveries began in July 2023, Bangladesh has fallen behind on payments to Adani Power, owing several hundred million dollars for energy already supplied. However, both parties dispute the exact amount of the debt.

Bangladesh’s acting power minister, Muhammad Fouzul Kabir Khan, told Reuters that the country has sufficient domestic energy capacity to manage without Adani’s supply, though not all domestic generators are operational.

Dhaka has expressed hope for renegotiating the deal to reduce its financial burden.