Bangladesh wants to revisit power agreement with India’s Adani
Date
12/24/2024 7:24:12 AM
(MENAFN) Bangladesh’s interim government, led by Nobel Laureate Muhammad Yunus, is reportedly considering revisiting a power deal with India’s Adani Group, citing unresolved tax benefits and concerns over the contract’s financial impact. The agreement, made in 2017 during former Prime Minister sheikh Hasina’s tenure, involves purchasing electricity from Adani Power’s coal plant in Jharkhand, India, which supplies about 10% of Bangladesh’s power needs. The deal was criticized for lacking a proper tender process, and the current administration claims that it costs Bangladesh more than other power contracts.
Since power deliveries began in July 2023, Bangladesh has fallen behind on payments, owing hundreds of millions of dollars. The interim government argues that it now has sufficient domestic power capacity to manage without Adani’s supply. This move coincides with broader controversy surrounding the Adani Group, including a recent US indictment of Gautam Adani and other executives for alleged bribery schemes linked to power contracts, which the Adani Group has denied.
Amid rising energy-import bills and financial pressure, Bangladesh is seeking fiscal support from international bodies like the World Bank. Additionally, several renewable energy projects from Hasina’s administration are now in limbo, with uncertainty surrounding their future.
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