Bangladesh halves power purchase from Adani: report

Bangladesh has halved the power it buys from Adani Power, citing lower winter demand, as it seeks to sharply lower prices under a purchase deal with the Indian company, reports Reuters.

Amid disagreements over dues running into hundreds of millions of dollars, Adani halved supply to Bangladesh on October 31 over payment delays as the country battles a foreign exchange shortage.

Subsequently, officials said Bangladesh told Adani to keep supplying only half the power for now, although it will keep paying its old dues.

“We were shocked and angry when they cut our supply,” Md Rezaul Karim, chairperson of the state-run Bangladesh Power Development Board, told Reuters. “Winter demand is now down, so we have told them there is no need to run both units of the plant,” he said.

After the High Court ordered a committee of experts last week to examine the contract with Adani, Reuters on Sunday reported that the government wants to renegotiate the contract “in case of anomalies.”

It will be cancelled only in case of irregularities such as corruption and bribery, Muhammad Fouzul Kabir Khan, Bangladesh’s power and energy adviser, told Reuters.

He also said some issues, such as Bangladesh not benefiting from some Indian tax exemptions to the power plant, have already been flagged to Adani and could partly form the basis of a deal renegotiation.

In reaction, Adani Power on Monday said it has no indication that the Bangladesh government is reviewing the power purchase agreement.

Adani Power continues to supply power to Bangladesh despite mounting dues, which are of significant concern and are rendering plant operations unsustainable, a spokesperson for Adani Power said in a statement.

“We are in constant dialogue with senior officials of Bangladesh Power Development Board and the Government of Bangladesh, who have assured us that our dues will be cleared soon,” the spokesperson said.