TL;DR:
- A legal notice was served to the Bangladesh government demanding a review of its electricity deal with Adani Group within three days or risk a High Court writ.
- The agreement has drawn criticism for forcing Bangladesh to pay higher prices for electricity from Adani’s Godda plant, raising concerns about fairness.
- Bangladesh Power Development Board (BPDB) owes Adani Power around $850 million in unpaid dues, leading to a reduction in electricity supply.
- Transparency International Bangladesh has called for an urgent reassessment of the contract, citing its negative impact on the national energy sector.
A legal notice has been served to the Bangladesh government, urging a review of its controversial electricity agreement with India’s Adani Group. The notice, sent by Supreme Court lawyer Barrister M Abdul Qaiyum, demands that the government initiate a revision of the contract within three days or face a writ petition in the High Court.
The agreement in question involves Bangladesh purchasing electricity from Adani’s Godda power plant in Jharkhand, India. Under the current terms, Bangladesh reportedly pays significantly higher prices for electricity compared to other coal-based power plants in the country. The coal used in the plant is sourced from Adani-owned mines in Australia and transported through Adani-owned ports in India, with the costs being passed on to Bangladesh.
Barrister Qaiyum’s legal notice references an Al Jazeera report that highlights the one-sided nature of the deal, which allows Adani to import coal into an Indian coal-mining state and transfer the full cost to Bangladesh. The notice also questions how such an agreement was executed without sufficient oversight, implying potential mismanagement or undue influence on Bangladeshi officials by Adani Ltd.
This legal action is not the first time concerns have been raised over the deal. Transparency International Bangladesh (TIB) previously called for a revision or cancellation of the agreement, citing its potential to make Bangladesh overly dependent on Adani for power supply. TIB criticized the deal as “vague and discriminatory” and warned that it could lead to Bangladesh paying up to three times more for electricity compared to other suppliers.
The controversy surrounding this agreement has intensified as Bangladesh faces mounting unpaid dues to Adani Power, totaling approximately $850 million. Adani Power has already reduced its electricity supply to Bangladesh by half and threatened to cut off supply entirely if payments are not made promptly. The high cost of electricity from Adani’s plant has also been linked to rising energy prices in Bangladesh, contributing to an 8% increase in power tariffs over recent years.
Despite these concerns, sources indicate that canceling the agreement may not be feasible due to Bangladesh’s reliance on the power supplied by Adani’s plant, which meets nearly 10% of the country’s electricity demand. However, there are ongoing discussions about renegotiating the tariff structure to alleviate some of the financial burden on Bangladesh.
The legal notice serves as a significant development in the ongoing debate over this contentious deal, raising questions about transparency and fairness in international agreements that have long-term implications for Bangladesh’s energy sector.
Source: The Daily Star
