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National

Bangladesh Requests Full Power Supply from Adani

Tuesday, 11 February 2025 , 06:07 PM

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Bangladesh has urged Adani Power to resume full electricity supply from its 1,600-megawatt power plant in Godda, Jharkhand, India. Although the plant was supposed to supply its entire output to Bangladesh, only half of that capacity has been delivered for the past three months. With rising electricity demand ahead of the summer season, Bangladesh is pushing for full restoration of the supply.

A senior official from the Bangladesh Power Development Board (BPDB) confirmed this to Reuters, stating that Bangladesh has formally asked Adani Power to restart full operations. Supply had been reduced due to lower winter demand and payment disputes, leading to a sales drop for Adani.

In 2017, under former Prime Minister Sheikh Hasina, Bangladesh signed a 25-year agreement with the Adani Group. The $2 billion power plant in Jharkhand comprises two 800-megawatt units, both designated solely for electricity supply to Bangladesh.

However, due to delays in payments, Adani Power halved its supply to Bangladesh on October 31, 2024. The reduction forced one unit to shut down on November 1, leaving the plant operating at just 42% capacity.

BPDB currently pays Adani Power $85 million per month for electricity. Now, with demand increasing, Bangladesh has requested Adani to restart the second unit.

BPDB Chairman Md Rezaul Karim told Reuters, "They attempted to synchronize the second unit based on our request, but high vibration issues prevented the restart. Technical challenges have delayed the process."

He also emphasized, "We are working on reducing outstanding payments. Currently, we pay $85 million per month, and we are trying to clear dues. There are no major issues with Adani at this moment."

A spokesperson for Adani Power did not immediately respond to Reuters' request for comments. However, in December, an Adani source claimed that BPDB owed approximately $900 million in outstanding payments. At the time, BPDB stated the dues were around $650 million.

Another point of contention is electricity pricing. Reuters' analysis suggests that Adani’s power costs about 55% more than other Indian electricity sources supplied to Bangladesh.

In response to concerns over the deal, a Bangladeshi court has ordered a special expert committee to review the power purchase agreement with Adani. The committee's findings are expected later this month, which could lead to further negotiations.

Additionally, Reuters reported that following student-led protests in August 2024, Sheikh Hasina left for New Delhi, India. The interim government later appointed an expert panel in September to reassess major energy agreements signed during Hasina's tenure.

The results of this review could have significant implications for Bangladesh’s long-term energy strategy and its agreement with Adani Power.