Adani Power States 'No Sign' of Bangladesh Reviewing a Power Agreement

03 Dec 2024

On Monday, Adani Power said that it has not received any indications suggesting that the Bangladesh government is reconsidering the power-purchase agreement (PPA) between the two parties, as per the report. Earlier, the report citing the country's de facto energy minister claimed that Bangladesh is seeking to renegotiate the pricing terms of its 25-year power purchase agreement with Adani Group, unless the deal is annulled by a court ruling.

The recent developments follow allegations made by U.S. authorities against Gautam Adani, accusing him of being involved in a $265 million bribery scheme in India, which he has denied. An Adani spokesperson clarified that the Bangladesh government shows no indication of reviewing our power purchase agreement.

It is noteworthy that on Monday, Adani Power shares saw a decline of 1.32%, trading at Rs 547.50. Despite the growing payment arrears, which the company has warned is creating significant operational challenges; Adani Power has pledged to continue its electricity supply to Bangladesh.

"The outstanding dues of Bangladesh are a grave concern and are causing instability in the plant's operations," they stated. Let it be known that Adani Power has been providing electricity to Bangladesh through a long-term agreement signed in 2017 between Adani and a government entity under the leadership of the now-ousted Prime Minister Sheikh Hasina.