Bangladesh calls for revision of power purchase agreement with Adani Power

3 Feb 2023 , 03:38 PM

Officials in Dhaka announced on Thursday that Bangladesh has called for a revision of a 2017 power purchase agreement with Adani Power Ltd. The reason for this request is that the price for the coal-generated electricity from the agreement appeared to be too high. 

This development highlights the determination of Bangladesh to secure affordable energy sources for its growing economy and underscores the importance of cost-effectiveness in power generation agreements.

Sources stated that the company has communicated with Adani Power to request a revision of their agreement. 

As per the media reports, the major reason for the dispute is 'high coal price' to be purchased for the Adani plant in Jharkhand, India.

According to Bangladesh's UNB news agency, the Bangladesh Power Development Board (BPDC) has sent a letter requesting a revision of their power purchase agreement with Adani Power Ltd. The request was prompted by a request from Adani Power to open letters of credit in India to import coal for the 1,600 MW power plant in Jharkhand's Godda district.

An official from BPDC stated that the price of USD 400 per metric ton quoted by the power company is excessive, and it should be less than USD 250 per metric ton, which is what the BPDC pays for imported coal at their other thermal power plants.

At around 1.35 PM, Adani Power was trading 5% lower at Rs191.95, against its previous close of Rs202.05 on NSE.

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