Adani Power stated on Monday that it has no indication that Bangladesh is reviewing a power purchase agreement (PPA) with the company. This follows a Reuters report suggesting that Bangladesh is seeking to renegotiate the terms of the agreement or potentially cancel it through legal channels.
Background of the Agreement
The PPA, signed in 2017, involves Adani supplying power to Bangladesh from its $2 billion coal-fired power plant in eastern India. Currently, the company provides 700-750 MW of power, down from an earlier supply range of 1,400-1,500 MW. Adani Power is also trying to recover over $800 million in outstanding dues from Bangladesh, which it says threaten the sustainability of its plant operations.
Bangladesh’s Review and Legal Developments
The Bangladesh High Court recently ordered an expert committee to review the contract amid allegations of overpricing and irregularities. The country’s interest in renegotiating stems from its desire to significantly lower costs associated with the deal.
The deal was originally signed under the administration of Prime Minister Sheikh Hasina, who faced accusations of corruption and was ousted this year following a popular uprising.
Adani Group’s Position
Adani Power emphasized its continued engagement with the Bangladesh Power Development Board (BPDB) and the Bangladeshi government, expressing confidence that outstanding dues will be cleared. The company’s spokesperson highlighted the financial strain caused by unpaid dues but affirmed that power supply to Bangladesh remains uninterrupted.
Broader Challenges for Adani Group
This development adds to ongoing scrutiny of Adani Group, which faces allegations of involvement in a $265 million bribery scheme in India — charges the group denies. Additionally, one Indian state is reviewing its power deal with the group, and French energy giant TotalEnergies has paused investments in Adani-related projects.
Implications
The controversy surrounding the PPA and the broader scrutiny of Adani Group raise questions about the stability of international energy agreements and the group’s financial resilience. For Bangladesh, the review of the deal could set a precedent for renegotiating unfavorable contracts, especially in a politically charged environment.