Can the government cancel the contract with India's private company 'Adani Power'? Is the government profiting by maintaining this agreement? Now that calculation is going on.

The government has set up a national review committee to look into how far the agreements made with Adani Power by the previous Awami League government were logical and how far they thought about the nation's interests. Final decision will be taken based on the report of the committee

Muhammad Fawzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources said, "We cannot do anything about the controversial law of 2010, because it is under the consideration of the court." However, we have formed an independent committee to review the electricity contracts that were signed during the previous government. We will take the final decision based on the report of that committee. The committee has not yet given its report

The power deal with Adani Power was reported by news agency Reuters on Friday. There they said, Bangladesh can keep the agreement.

The report, citing sources, said that supply from Adani Power's thermal power plant located in Jharkhand's Godda, which exports power to Bangladesh, has already been reduced by at least 500 MW. The production capacity of Adani power plant is 1 thousand 498 MW.

The difference between the contract with other power plants is that even if PDB wants to, it cannot buy electricity below 34 percent of this 1,498 MW from here. Even if it is not needed, 34% of the electricity has to be bought. Even if it does not buy, Adani will have to pay capacity payment for that amount of electricity. Every four months demand should be paid once. That is, a demand for how much electricity PDB will take from January to April will have to be paid in December. PDB will pay the price of imported coal even if PDB does not take power for any reason.

Can the government cancel this agreement? When asked, the senior vice-president of Consumers Association of Bangladesh (CAB) Professor Shamsul Alam said that if the agreement is to be cancelled, the government will have to face several dangers. Because this agreement was made by the state. As a result, we may have to pay a lot. Again they can go to international court. As a result, it is not possible to cancel the contract now. However, the government can work on the deviations that have occurred here. They cheated us on coal price, they can be caught for that. Secondly, those who made this agreement have been against the interest of our country. As a result, action can be taken against the signatories of the agreement. Again, the capacity charge that has been determined has not been followed by any law. As a result, the government can discuss the matter with them.

Adani Power costs about 12 rupees per unit in Bangladesh, 27 percent more than other private producers in India and 63 percent more than Indian state-owned plants, a Bangladesh Power Development Board official told Reuters, citing the latest audit report for the 2023-24 fiscal year.

Under the previous agreement, Bangladesh has been supplying around 1,160 MW of electricity from Adani and other Indian plants since April 2023. However, an Indian spokesperson said that although Bangladesh has reviewed the agreement, there is no indication of Adani in this regard. We continue to supply electricity to Bangladesh despite rising arrears, which is a matter of concern.

Bangladesh's total arrears to several other state-owned power companies, including Adani, have exceeded $1 billion. If some of this amount is not paid immediately, there is a risk of further disruption of power supply in the country.

Has Bangladesh benefited from the agreement with Adani? When asked to know, Golam Moazzem, research director of research institute Center for Policy Dialogue (CPD), said, there are many issues here. First, Adani uses coal from its own plants. The price is much higher than the international market. Here's another thing, if they get any tax rebate that will be adjusted to the price. But they did not adjust the price even after getting the tax benefits. As a result, there is a need for adjustment in terms of debt, as well as adjustment in price. Now whether you have any logical reason to cancel it? If this electricity does not come, what is the alternative to electricity in Bangladesh? Has that been confirmed? Again, if the government thinks that it is not possible to pay their price financially or it is difficult or they cannot afford it, then the contract can be cancelled. In that case, we have to see whether these 'clauses' are there

The government has set up a review committee to review the entire matter. On August 3, the committee issued a public notice asking people for information on corruption. Information on corruption in power and energy generation and supply companies can be sent by email. The Review Committee will review the agreements entered into under the Increase in Rapid Supply of Electricity and Energy (Special Provisions) Act, 2010 (Amended 2021).

Retired High Court judge Moinul Islam Chowdhury has been convened by the five-member committee for review. BUET Professor Abdul Haseeb Chowdhury, Chartered Accountant Ali Ashfaq, Former Chief Economist of World Bank Dhaka Office Zahid Hossain and University of London Professor Moshtaq Khan are members of the committee.

How far has the work of the review committee progressed? When asked, committee member and BUET professor Abdul Haseeb Chowdhury said, "We are working, it is a huge task. It will take us some time to do the work. We are dealing not only with electricity but also with energy. As a result, it is difficult to comment until the entire work is completed. But I can say this, we are reviewing the entire matter of the agreement with Adani

Incidentally, in 2010, the then Awami League government passed the 'Rapid Increase in Supply of Electricity and Fuel (Special Provisions) Act' for two years. The law was subsequently extended for two years in 2012, four years in 2014, three years in 2018 and five years in 2021. The Act provides that no question shall be presented to any court as to the validity of any order, order or direction, import of fuel for electricity or establishment of power plants or any other activity in the electricity and energy sector.