Adani Cuts Power to Bangladesh, Eyes Sri Lanka
- Update Time : 05:19:41 am, Tuesday, 24 December 2024
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Adani Power has reduced electricity supply to Bangladesh from its Godda plant in Jharkhand since October 31, cutting deliveries to 40-50% due to unpaid bills. With one unit idle, Adani plans to sell surplus electricity to Sri Lanka but requires Bangladesh’s consent as per their agreement. Political changes in Bangladesh have pressured the project, but India allowed Adani to sell electricity domestically by amending laws. However, a new transmission line would be needed for this as the existing line is dedicated to exports to Bangladesh.
The 1,600 MW Godda plant, built exclusively for Bangladesh under a 2017 deal, was intended to supply power for 25 years. Reports indicate Adani has breached some terms of the agreement. If Adani sells power elsewhere without permission, Bangladesh can terminate the contract with 60 days’ notice. The Bangladesh Power Development Board (BPDB) has not paid bills since March 2024, with arrears now covering eight months, prompting Adani to reduce supply. The company is exploring selling electricity to Sri Lanka or the Indian Energy Exchange to utilize the plant’s capacity.
Adani’s efforts face legal and contractual hurdles, as the agreement specifies that power from Godda must be supplied to Bangladesh. Without BPDB approval, any third-party sales could jeopardize the contract. Despite Adani’s claims, Bangladeshi officials maintain that selling electricity elsewhere requires prior consent.
