TL;DR:
- A writ petition has been filed in the High Court seeking the cancellation of all power agreements between Bangladesh and India’s Adani Group.
- The petition argues that the agreements are unfair and one-sided, calling for a review or complete cancellation.
- The 25-year power purchase agreement signed in 2017 is under scrutiny, with electricity currently supplied from Adani’s 1,600 MW plant in Jharkhand, India.
- The Ministry of Power and Power Development Board (PDB) officials have been named as respondents to the petition.
A writ petition has been filed in the High Court of Bangladesh, calling for the cancellation of all power agreements between the government and India’s Adani Group. The public interest writ, submitted by Barrister M Kayum, is set to be heard by a bench led by Justice Farah Mahbub and Justice Debashish Roy Chowdhury. The petition names the Ministry of Power’s secretary and other key officials as respondents.
The legal action follows a notice issued on November 6, urging the government to revoke or reconsider what are described as “unfair and one-sided” contracts with Adani Group. The notice requested the formation of a review committee composed of energy and legal experts to assess the agreements and provide a detailed report. The Power Development Board (PDB) chairman and the Ministry of Power Secretary were given a three-day deadline to respond, which passed without action, prompting the filing of the writ.
The agreements in question include a 25-year power purchase deal signed in 2017 under which Bangladesh imports electricity from Adani’s 1,600-megawatt coal-fired power plant located in Jharkhand, India. The power supply from this plant is crucial for Bangladesh, which faces frequent power shortages. However, these agreements have been criticized for being disproportionately beneficial to Adani Group.
This legal challenge comes at a time when Bangladesh is grappling with significant energy supply issues. In recent months, Adani Power has reduced its electricity deliveries to Bangladesh due to an unpaid bill of $800 million. The company supplies about 10% of the country’s electricity needs, and any disruption in supply could exacerbate ongoing power shortages. Bangladeshi officials have been working to resolve payment disputes with Adani, with partial payments already being made to avoid further reductions in electricity supply.
The controversy over these power agreements has been brewing for some time. Critics argue that the contracts are heavily skewed in favor of Adani Group, allowing the company to charge higher prices for coal and imposing steep penalties for delayed payments. A national review committee has been established to reassess 11 power deals, including those with Adani, as part of efforts to address concerns about their fairness.
As Bangladesh continues to face economic challenges, including dwindling foreign currency reserves and rising energy costs, the outcome of this writ petition could have significant implications for the country’s energy sector and its relationship with foreign power suppliers like Adani Group.
Source: Dhaka Tribune
