With the new interim government in Dhaka indicating it will review its 2017 agreement with Adani Power, the company is exploring back-up plans to sell power in India. To this effect, its 1600 MW thermal plant in Godda, Jharkhand, which supplies its entire generated power to Bangladesh, has received approval for a connection to the Indian grid via a substation in Bihar’s Lakhisarai. This connection will only become operational once its subsidiary, Adani Power Jharkhand Ltd (APJL), constructs a 130-km transmission line and additional bays at the substation — a process APJL said could take “considerable time”. APJL’s request for an “expeditious connection to the Indian grid” through an interim link to a closer substation in Banka, 30 km from the Godda plant, was rejected by the Central Transmission Utility of India Ltd (CTUIL), the national transmission planning authority, citing technical constraints, according to the minutes of a special consultation meeting on August 21. CTUIL advised APJL to explore alternative connection options for discussion at a future meeting. Incidentally, after connectivity approval was granted, West Bengal’s state transmission utility cautioned CTUIL that connecting the Godda plant to the grid could overload critical transmission infrastructure in the region. CTUIL acknowledged that parts of the system are “already heavily loaded” but maintained that the additional strain from Godda would be minimal. It also confirmed that upgrades to a key high-voltage transmission line are already underway to strengthen the network. The Ministry of Power had recommended connectivity for the Godda plant on August 10, two days after Mohammad Yunus was sworn in as Chief Adviser of Bangladesh, citing "emerging geopolitical tensions in Bangladesh and outstanding payment dues," according to the meeting minutes. Just four days earlier, APJL informed the ministry that allowing the plant to supply power to India would be "beneficial" when the Bangladesh Power Development Board (BPDB) does not schedule power due to low demand, default under the PPA, or geopolitical issues. A senior official of the interim government had told The Indian Express that the PPA will be reviewed to assess the terms of the agreement and determine whether the power price is justified. The Adani Group did not respond when sought for comment. On August 12, India’s Ministry of Power amended the Guidelines for Import/Export (Cross Border) of Electricity, allowing domestic plants exclusively supplying power to neighbouring countries - currently only Adani's Godda plant — to sell power within India. That same day, the ministry directed power regulatory bodies, including CTUIL, to draft a standard operating procedure for granting connectivity to such plants. The proposal for connectivity to Adani’s Godda plant was discussed and approved by CTUIL during a special consultation meeting on August 21. It was decided that the plant will connect to Power Grid Corporation of India Ltd’s (PGCIL’s) Lakhisarai substation. To operationalize this connection, APJL needs to construct a 400 kilovolt (kV) dedicated transmission line to Lakhisarai and meet technical requirements at both ends. During the meeting, APJL noted that “implementation of 130-km long (line) to Lakhisarai would take considerable time, accordingly, for expeditious connection to Indian grid some interim arrangement may also be provide like connection to Banka,” which is much closer to the Godda plant. However, CTUIL highlighted that the Banka substation faced "technical issues," advising APJL to explore alternative options. “M/s APJL was requested to share details of such lines. It was decided that after receipt of inputs from M/s APJL, further studies would be carried out for interim connection which could be deliberated in a separate meeting,” the minutes stated. In July last year, industrialist Gautam Adani met with former Prime Minister of Bangladesh Sheikh Hasina following the full-load commencement of power supply from the Godda plant. Ultra Super-Critical Thermal Power Plant (USCTPP) in Godda, Jharkhand. The plant, which began supplying electricity to Bangladesh in April 2023, is the only one in India to export its entire output to a neighbouring country. The deal was agreed upon during Prime Minister Narendra Modi’s visit to Dhaka in 2015. Activists in Bangladesh have repeatedly criticised the PPA, arguing that the high cost of importing power from Godda is not economically viable for the country. Earlier this month, Adani Power warned Bangladesh’s interim government that its $500 million backlog in unpaid dues for power from Godda was becoming “unsustainable,” according to a report in the Financial Times. Earlier, when asked about Dhaka’s suggestion for a review, an Adani Power spokesperson had told The Indian Express: “We have no information of the Bangladesh government reviewing our PPA. In the spirit of true partnership, we continue to supply power to them despite the massive outstanding owned to us. We are in constant engagement with the Bangladesh authorities and have requested them for early liquidation of our dues as it is making our operations unsustainable.” The power shift: A timeline of events: AUG 5: Sheikh Hasina resigns AUG 6: Adani Power Jharkhand Ltd requests Ministry of Power (MoP) nod to sell power in India AUG 8: Muhammad Yunus sworn in as Chief Adviser of Bangladesh AUG 10: MoP recommends Godda plant connectivity AUG 12: MoP amends rules to allow Godda plant to sell power in India, instructs regulators to draft SOP AUG 21: Transmission authority holds special meeting, grants connectivity
