Adani Group Faces Storm of Controversies as Bangladesh Power Dispute Escalates
Adani Group, the parent company of Adani Power Limited, faces a storm of controversies, including a recent U.S. bribery and fraud indictment. Meanwhile, Bangladesh and Adani Power Limited are locked in a dispute over unpaid dues and alleged irregularities in their power supply deal.
Adani Power Limited has threatened to suspend power supply to Bangladesh from November 11 due to unpaid dues amounting to about $496 million. This comes amidst a long-standing dispute between the two parties over the power import deal.
The Bangladesh government has cancelled the controversial Speedy Increase of Power and Energy Supply Act, 2010, which allowed the previous regime to bypass tendering procedures for power projects. This cancellation has further complicated the situation with Adani Power Limited.
An initial report by the National Committee has highlighted anomalies in the approval process of the Adani Power Limited project in Jharkhand. Opposition parties in India have also accused the government of misusing state-owned institutions and diplomatic influence to benefit the Adani Group.
The power purchase agreement with Adani Power Limited was signed in 2017 for 25 years, with power supply scheduled to begin in 2023. Bangladesh cleared $437 million dues in June, expecting renegotiation of the power purchase agreement. However, Adani Power Limited pursued international arbitration instead. Bangladesh has since signalled it could scrap the power purchase agreement due to alleged irregularities and frauds.
A National Committee has found massive irregularities and frauds in the power purchase deal with Adani Power Limited. Despite the ongoing dispute, there is no clear information on who initiated Adani Power Limited's electricity supply operations in Bangladesh in 2023.
The dispute between Bangladesh and Adani Power Limited over the power supply deal continues to escalate, with both parties digging in their heels. The future of the power supply to Bangladesh from Adani Power Limited remains uncertain, pending resolution of the ongoing issues.
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