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PDB Preparing for Talks with Adani

Rtv News

  15 Dec 2024, 10:26
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The Bangladesh Power Development Board (PDB) has confirmed that no discussions have taken place regarding the renegotiation of electricity prices imported from India’s Adani Group.

However, Adani Power Limited recently told Reuters that they are in discussions with the PDB on various aspects of the agreement, including pricing. The PDB Chairman stated that preparations are underway to hold talks with Adani, but nothing concrete has been initiated yet.

In the fiscal year 2022-23, Adani Power Limited sold electricity to Bangladesh at nearly double the price per unit compared to other sources, setting its rates unilaterally. While Bangladesh imports electricity from other Indian plants at less than BDT 7.5 per unit, it has been paying BDT 14.02 per unit for electricity from Adani.

A recent Reuters report highlighted that even though Adani reduced its price to BDT 12 per unit for the 2023-24 fiscal year, it remains 27% higher than the prices set by other private power producers in India and 63% higher than state-owned producers. This disparity in pricing has brought tensions in the PDB-Adani relationship to light.

While Adani claims discussions are ongoing, PDB Chairman Rezaul Karim told Somoy Sangbad that no formal talks have taken place yet. “We are currently analyzing the terms of the contract independently. Before proposing or initiating discussions, it is crucial to fully understand the contract's clauses. Once this analysis is complete, a decision will be made soon,” he said.

Shamsul Alam, Energy Advisor to the Consumer Association of Bangladesh (CAB), criticized the deal, stating, “Bangladesh is purchasing electricity from Adani at double the price. Many of those who facilitated such major irregularities in the power sector during the tenure of the Awami League government remain in their positions.

Action must be taken against them. Lessons must be learned from this unequal agreement with Adani to avoid similar mistakes in the future.”

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