The government of Bangladeshi is reviewing its 2017 power purchase agreement with India’s Adani Power after concerns emerged over steep tariffs and unfavourable contract terms.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood told Parliament on Thursday that the government is evaluating two possible approaches: resolving the matter through international arbitration or engaging in direct talks with Adani Power to renegotiate the agreement and bring down electricity costs.
The minister noted that a national committee, formed during the interim government, had already conducted a detailed review of the 25-year contract signed with Adani Power (Jharkhand) Limited.
Chaired by a retired Supreme Court judge and including experts in energy, law, economics, and finance, the committee assessed the agreement comprehensively.
The panel concluded that the electricity tariffs set under the contract - signed during the previous Awami League administration - were significantly higher than both domestic and global market rates at the time. International legal opinions were also sought to evaluate the cross-border agreement.
Describing the deal as a “burden” due to its high costs and restrictive clauses, the minister assured that the government is committed to taking all necessary steps to protect national interests based on the committee’s recommendations.
The 2017 agreement allows Bangladesh to import electricity from Adani’s Jharkhand Power Plant, but it has faced criticism since its inception for issues related to pricing and transparency.
