Adani power projects: Bangladesh hiring firm to aid review, Sri Lanka to let Cabinet decide

“The committee is currently engaged in the detailed investigation of several contracts. They include Adani (Godda) BIFPCL 1234.4 megawatt coal fired power plant,” it said, adding to the list power plants in Payra (1320 MW coal), Meghnaghat (335 MW dual fuel), Ashuganj (195 MW gas), Bashkhali (612 MW Coal), Meghnaghat (583 MW dual fuel) and Meghnaghat (584 MW gas/RLNG).

“In an extraordinary resolution, the committee led by Justice Moyeenul Islam Chowdhury said it needed more time to do further analysis of other solicited and unsolicited contracts. The committee is collecting evidence that may lead to potential renegotiation or cancellation of contracts in line with the international arbitration laws and proceedings,” it said.

“To facilitate this, we recommend the immediate engagement of one or more top-quality international legal and investigative firms to assist our committee, the review committee said in its resolution,” the statement said.

“It said it wants to ensure that its investigations are in line with international standards and will be acceptable in international negotiations and arbitration,” it said.

Reached for comment, a spokesperson for Adani Power Limited told The Indian Express, “We do not comment on the internal matters of Bangladesh. Our PPA is in existence for (the) past seven years and is perfectly legal and fully compliant with all laws. We continue to fulfil our contractual obligations by supplying power.”

The Bangladesh interim government, under Prof Muhammad Yunus, had formed a high-level inquiry committee, consisting of energy and legal experts, to re-examine the country’s power purchase agreement (PPA) with the Adani Group signed in 2017. This was in line with the direction of the Bangladesh high court.

On November 19, a two-judge bench, comprising Justice Farah Mahbub and Justice Debasish Roy Chowdhury, asked the government to submit the committee’s report within two months, Bangladesh’s news agency UNB had reported.

Additionally, the HC had ordered the government to submit all documents related to the 25-year deal between the power division and Adani Group in a month’s time.

The HC’s directive came after a writ petition was filed by Supreme Court lawyer M. Abdul Qaiyum on November 13. Qaiyum had earlier sent a legal notice to the chairman of Bangladesh power development board (BPDB) and the secretary to the ministry of power and energy and sought reevaluation of the terms of the PPA or cancellation of the deals, the UNB reported.

The Indian Express had reported on September 12 that the Yunus-led interim government was set to scrutinise Indian businesses including the Adani Group which exports power from its Jharkhand unit under a 2017 agreement.

More specifically, the interim government is keen to know the terms of the agreement and if the price being paid for power is justified.

In November 2017, Adani Power (Jharkhand) Ltd (APJL) signed a 25-year 1,496 MW (net) Power Purchase Agreement with the Bangladesh Power Development Board. Under this, Bangladesh would buy 100 per cent electricity produced by AJPL’s Godda plant. The unit, which runs on 100 per cent imported coal, was declared a Special Economic Zone by the Indian government in March 2019.

The Godda plant, fully commercially operational during April-June 2023, supplies 7-10 per cent of Bangladesh’s base load. In 2023-24, it exported about 7,508 million units of power, or almost 63 per cent of India’s total power exports of 11,934 million units to Bangladesh.

In value terms, India’s power exports to Bangladesh had crossed $1 billion, almost 10 per cent of India’s total exports to its neighbour.

In the case of Sri Lanka, the new government led by Anura Kumara Dissanayake is yet to take a final decision regarding the Adani Green Energy Ltd. (AGEL) wind power project in Mannar and Pooneryn, among other ongoing investments in the country.

Speaking to Sri Lankan daily The Sunday Morning, Ceylon Electricity Board (CEB) spokesperson Eng. Dhanushka Parakramasinghe confirmed that while the matter was being “reviewed”, no final decision had been made so far.

He said a proposal regarding the wind power project would be submitted to the Cabinet in the coming weeks for further deliberation.

“The Cabinet will review all the details regarding the Adani wind power project before making a final decision. We are currently in the process of evaluating all aspects of the project, including its financial feasibility and environmental impact,” Parakramasinghe told The Sunday Morning.

“It is important that we ensure transparency and accountability in such large-scale projects, especially in light of the international concerns raised about the Adani Group,” he said.

The AKD government had told the country’s Supreme Court that it would reconsider the approval granted by the previous government to the Adani Group for the wind power project.