Power contract with Adani may be cancelled
September 30, 20244 Mins Read
Jumbangla Desk: There have been various types of arguments since the beginning regarding the unequal power purchase agreement with India's Adani Group. Adani has been supplying electricity to Bangladesh commercially since the middle of last year.

It is alleged that during the Awami League government, the Indian company has taken a special opportunity to increase profits through this agreement for a period of 25 years. The interim government is reviewing this uneven power deal with the Adani Group. From the report made by the voice of time, the details are presented in this regard:

On the other hand, energy experts have been demanding cancellation of the contract with Adani in the interest of the country. After the fall of Sheikh Hasina's government, the country's government has amended the electricity export rules by allowing the electricity produced by Adani's power plant built for 100% export to be sold in India as well.

The Indian government has amended its laws regarding Adani's power, say senior officials in the power department. Now Adani can connect to India's grid if it wants.

Through this, the opportunity to cancel the contract with them has been created. Because we have to negotiate with Adani to supply the electricity to the Indian grid. If Adani comes up with such a proposal it will be easy to cancel the contract with them. Because we are uncomfortable with the contract with Adani. It should be done in the interest of the country.

Officials also say that the PPA (Power Purchase Agreement or Power Purchase Agreement) signed by Bangladesh Power Development Board (BPDB) with Adani states that in order to change anything, the consent of both parties must be taken. Now when they come to sit with us, we will inform them of the exit. But if Adani's power import is stopped before the nuclear power plant is operational, load shedding will increase in large parts of North Bengal.

Adani Group has constructed a 1,600 MW coal-fired power plant at Godda in Jharkhand, India, to supply electricity to Bangladesh.

BPDB entered into a power purchase agreement with Adani Group in 2017 to buy electricity. Power will be purchased from the two-unit power plant for 25 years. An analysis of the agreement shows that the entire agreement is structured in such a way that the Adani Group benefits. According to the agreement, Bangladesh will have to declare in advance how much electricity it will take every three months.

If Bangladesh consumes less electricity than this, it will have to pay the price equal to the declared amount. There are many conditions in the agreement, due to which Adani will take an additional Tk 375 thousand crore from Bangladesh in 25 years.

But BPDB takes as much electricity as it needs from the private power plants in Bangladesh. For this there is no need to send demand three months in advance.

Meanwhile, the Customs Intelligence and Investigation Directorate (CIID) is looking into whether there are any irregularities in Adani's contract. The inquiry committee, which started on September 8, has been asked to complete the inquiry within 30 working days and submit the report.

Muhammad Fawzul Kabir Khan, adviser on power, energy and mineral resources, said in a press conference recently, 'A committee has been formed to verify all contracts signed with Adani, including the power contract with special provisions. After receiving the report of that committee, action will be taken in this regard.

Adani is also being paid more capacity payments due to unequal contracts. Adani's electricity will only incur a capacity payment of around six cents per unit, which is 7.20 paise in local currency. According to that, Adani will only take around 950000000000000 as capacity charge annually. The average capacity charge per unit of gas-based and oil-based private rental power plants in Bangladesh ranges from 90 paisa to 1 taka 20 paisa.

When asked about this, the former professor of BUET and expert on energy and sustainable development. Ijaz Hossain said, 'The electricity contract with Adani should be carefully examined. At the same time, it is also necessary to see how much the power plant is needed for us. If the power plant is not cost effective for us, the contract can be reviewed and canceled. If necessary, the agreement can be revised with the consent of both parties.'

Dr. Ijaz Hossain also said, 'We are getting electricity from Adani at the same price as our other coal-based plants. Even though we have the capacity, we cannot generate additional electricity due to energy crisis. The production cost of oil based power plant is more than 20 rupees, we are getting electricity from Adani at about 12 to 13 rupees per unit.

Consumers Association of Bangladesh (CAB) energy advisor Professor M Shamsul Alam said, 'Adani's contract should be cancelled. Bangladesh lost everywhere in this agreement.'

Meanwhile, Adani Group owes about 800 million dollars to Bangladesh for electricity supply. Recently, the chief advisor of the interim government for quick payment of this money. Gautam Adani, chairman of the group, wrote to Muhammad Yunus. A few days ago, the electricity department said that $150 million had been paid.

During his visit to Bangladesh in 2015, Indian Prime Minister Narendra Modi discussed with the then Prime Minister Sheikh Hasina about the power purchase of his close friend Adani . Two months after Modi's visit, BPDB signed an MoU with Adani Power.

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