Home / Industry / Energy /  Bangladesh seeks revision in 25-yr PPA with Adani Power

New Delhi: The Bangladesh Power Development Board (BPDB) has sought revision of its power purchase agreement with Adani Power for import of power from its Godda power plant in Jharkhand, said two people aware of the development.

BPDB signed a 25-year PPA with Adani Power in November 2017 to supply 1,496 MW of electricity from a coal-based power plant in Jharkhand.

The people cited above said the matter relates to the price of coal to be purchased as the fuel for the project. The cost of import and transportation of fuel will be incurred by Bangladesh and the price would be factor in the power tariffs under the PPA.

BPDB, which oversees the development of Bangladesh’s power sector, has sent a letter to Adani Power regarding revision of the agreement, the United News of Bangladesh (UNB) news agency reported, citing unnamed officials. Adani Power had requested a demand note from BPDB quoting the coal price at $400 per metric tonne, which the Bangladeshi side thinks is higher than current internal market prices, the report said.

The power generated in the Godda plant will only be supplied to Bangladesh and Adani requires a demand note from the Bangladeshi body to present to the Indian authorities for opening letter of credit (LC) against the coal import. UNB news agency first reported the development on Wednesday.

Responding to a question during a weekly media briefing on Thursday, external affairs ministry spokesperson Arindam Bagchi said the Indian government has not been approached by any government on the matter and it does not pertain to the foreign ministry.

Queries sent to Adani Power, the union ministry of power and BPDB remained unanswered till press time.

The power plant is among projects developed with a view to boosting economic ties between the two countries and India’s aim to consolidate its strategic position in the South Asian region.

During the India visit of Bangladesh Prime Minister Sheikh Hasina in September last year, Adani Group Chairman Gautam Adani met her and said in a tweet that both sides are committed to commissioning the 1600 MW Godda Power Project and the dedicated transmission line to Bangladesh would be completed by 16 December, 2022.

The eastern neighbour is increasing its domestic power generation and import of power in a bid to ensure energy security as it has faced some severe power outages over the years.

Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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