Another blow for Gautam Adani? Bangladesh seeks review of power deals, including one with Adani Group

A review committee under Bangladesh’s Power Ministry has recommended investigations into power purchase agreements signed by former Prime Minister Sheikh Hasina with several business groups, including the Adani Group, PTI reported.

The interim government, led by Chief Adviser Muhammad Yunus, formed the committee to review deals signed under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010, amended in 2021.

In an official statement, Yunus’s office announced that the committee has proposed appointing international legal and investigation agencies to examine agreements made during Hasina’s tenure from 2009 to 2024. The focus includes the Adani (Godda) 1234.4 MW coal-fired plant, a project built exclusively to supply power to Bangladesh, and six other deals, including one with a Chinese company and Bangladeshi firms close to Hasina’s regime.

The committee claims to have gathered significant evidence suggesting the agreements require cancellation or revision under international arbitration laws. Retired High Court judge Moyeenul Islam Chowdhury, who leads the review, emphasised the need for more time to analyse other contracts.

India views the power sector as vital to its ties with Bangladesh. However, tensions have risen due to a dispute over an unpaid USD 800 million power supply bill owed to Adani Power Limited. Although Bangladesh’s Power Development Board recently paid USD 150 million, it faces challenges due to a dollar shortage.

Adani’s Godda plant, located in Jharkhand, may also sell power domestically following India’s legal changes, further complicating the conflict.