Delhi, December 19, 2024 (Punjab Khabarnama Bureau): Bangladesh’s interim government has reportedly raised concerns over a multi-billion-dollar agreement with Adani Power, accusing the Gautam Adani-led company of not passing on tax benefits related to a power plant critical to the deal, reports Reuters.
In 2017, Adani Power, owned by billionaire Gautam Adani, entered into an agreement to supply power from its coal-fired plant in eastern India to Bangladesh. The Bangladeshi government is now seeking to renegotiate the deal, which it claims is costing more than other similar power deals, according to Bangladesh power agency documents and letters between the two parties cited in the report, which also interviewed six Bangladesh officials.
Bangladesh has been facing delays in payments to Adani Power since the supply began in July 2023, and the two sides are in dispute over the total amount owed, the report said.
Bangladesh’s energy minister, Muhammad Fouzul Kabir Khan, stated that the country now has sufficient domestic power generation capacity, though some plants remain inactive.
The deal includes provisions for tax exemptions, but Bangladesh claims that Adani Power did not inform them of changes to the plant’s tax status, as required by the agreement. This failure has led to concerns over potential savings that Bangladesh believes it should have received. The Bangladesh Power Development Board (BPDB) estimates potential savings of around $28.6 million from the tax benefits.
The Reuters report revealed details about Bangladesh’s plan to reopen the 25-year deal, and that it hopes to use the fallout from US prosecutors’ November indictment of Adani and seven other executives for their alleged role in a $265 million bribery scheme to press for a resolution.
Summary: Amid a payment dispute, Bangladesh looks to reopen its power deal with Adani, citing bribery charges as part of the renegotiation process.