Govt Reviews Adani Power Deal Over High Tariffs

The government has moved to reassess its controversial power purchase agreement with India’s Adani Power following findings that the deal carries unusually high tariffs and unfavourable terms.

Power, Energy and Mineral Resources Adviser Iqbal Hasan Mahmud Tuku disclosed the development in Parliament on Thursday while responding to a question from lawmaker Shahjahan Chowdhury.

He said the government is now considering two possible courses of action: seeking resolution through international arbitration or entering into direct bilateral negotiations with Adani Power to revise the agreement and lower electricity prices.

The adviser told Parliament that a national committee had been formed during the interim government to review the 2017 agreement signed with Adani Power (Jharkhand) Limited.

The committee, headed by a retired Supreme Court judge and comprising energy experts, legal specialists, economists and chartered accountants, carried out a detailed assessment of the contract.

According to the committee’s findings, the electricity tariff fixed under the agreement, signed during the tenure of the Awami League government, was significantly higher than both domestic and international market rates at the time.

The committee also sought opinions from international legal experts on the implications of the cross-border agreement.

Quoting the committee, the adviser said the deal had become a “burden” because of its high cost and restrictive conditions.

He added that the government is committed to taking all necessary steps to protect national interests in line with the committee’s recommendations.

The 25-year agreement, signed in 2017, allows Bangladesh to import electricity from Adani’s power plant in Jharkhand, India.

However, the deal has faced criticism from the outset over concerns about transparency, pricing and long-term financial implications.