Bangladesh seeks renegotiation of Adani Power’s controversial deal, citing high electricity rates. This 25-year power purchase agreement has become the focus of a court-ordered investigation. The government is pushing for price reductions unless the court cancels the deal altogether.
Court investigation into Adani power deal
The Bangladesh High Court has initiated a probe into the Adani Power agreement. This investigation, led by a team of experts, will assess the contract’s fairness and identify any irregularities. Findings are expected by February 2025, which will guide the court’s final decision.
Bangladesh pushes for fair pricing
Bangladesh has raised concerns about the high costs under Adani’s agreement. In 2022/23, Adani charged 14.02 taka per unit, significantly higher than the national average of 8.77 taka. Even after a rate drop to 12 taka in 2023/24, prices remain 27% higher than other private producers. This has strained the government’s finances, forcing it to subsidize electricity with an annual bill of 320 billion taka.
Renegotiation or cancellation on the table
Energy adviser Muhammad Fouzul Kabir Khan has clarified Bangladesh’s position. If the investigation reveals anomalies, the government will demand a renegotiation. However, if evidence of corruption or bribery emerges, cancellation of the agreement will be pursued.
Energy independence and future strategy
Khan highlighted that Bangladesh has enough domestic power capacity to meet its needs. The government aims to utilize local plants more efficiently and avoid dependency on costly external suppliers. Recent cuts in Adani’s supply have had no major impact, proving Bangladesh’s ability to manage its energy demands independently.
Bangladesh’s decision to seek renegotiation of Adani Power’s deal reflects its commitment to securing fair energy pricing. As the court investigation continues, its outcome will determine the future of this significant agreement.
