The 2017 deal enabled Adani Power to provide Bangladesh electricity from its eastern India coal-fired power facility.
An interim government of Bangladesh said that Adani Power, owned by Indian billionaire Gautam Adani, broke an agreement worth billion related to withholding tax benefits on a coal power plant from which it supplies electricity in the country. Given the cost of Shashee’s deal relative to other coal power contracts, it is also under scrutiny following a direct appointment by former prime minister Sheikh Hasina.
According to the report, from July 2023, when Adani Power started supplying electricity till now, Bangladesh has generated huge debts, and there are discrepancies in claims by BPDB (£516 m) versus what was claimed by Adani (£714m). Bangladesh accuses Adani failed to pass on tax benefits, could save £22.7 million in 2024
That prompted Bangladesh’s de facto power minister, Muhammad Fouzul Kabir Khan, to declare that his country no longer needed Adani due to growing domestic capacity. Muhammad Yunus, the interim government leader and Nobel laureate, is reviewing – much of it signed during Hasina’s previous time in office concerns about how they were negotiated.
The power supply was down by half from Adani Power in Oct 2024 as the payment row escalated. But the company says it has done nothing wrong and is also demanding performance from contractors under its contract terms, which may be settled in arbitration Singapore. What the government will decide to do about it [the Chamoli disaster] is contingent on pending investigations.