Bangladesh to review power deals under Sheikh Hasina's leadership, Adani Group scrutinised over unpaid dues and legal issues
Bangladesh’s interim government , headed by Chief Adviser Muhammad Yunus, has formed a committee to review power contracts signed by exiled former PM Sheikh Hasina including a deal involving India’s Adani Group. US Securities and Exchange Commission (SEC) recently charged Gautam Adani and seven other defendants, including his nephew Sagar Adani, over allegations of paying USD 265 million in bribes to Indian government officials.
"The National Review Committee on Ministry of Power, Energy and Mineral Resources has recommended the appointment of a reputed legal and investigation agency to review the major power production agreements signed during the autocratic regime of Sheikh Hasina from 2009 to 2024,” an official statement said.
The committee is reviewing seven significant energy and power projects, including the Adani (Godda) BIFPCL 1234.4 MW coal-fired plant, a subsidiary of Adani Power Limited. Other deals under review involve a 1320 MW coal-fired plant built by a Chinese company and multiple contracts with Bangladeshi companies associated with the past regime.
“In doing so, we recommend the immediate appointment of one or more top-level international legal and investigation agency or agencies to assist the committee,” the statement said, quoting a letter from the committee, headed by retired High Court judge Moyeenul Islam Chowdhury.
Adani Group’s contribution to Bangladesh’s power sector
On November 17, Adani Power (Jharkhand) Ltd (APJL) entered a 25-year agreement with the Bangladesh Power Development Board to supply 1,496 MW of electricity from its Godda plant. Under the agreement, Bangladesh agreed to purchase all the electricity produced by the plant.
According to the deal, 100 per cent of the power generated by the plant is supplied to Bangladesh. It is also India’s first transnational power project and commissioned power supply since June 2023.
In 2023-24, it exported about 7,508 million units of electricity, accounting for nearly 63 per cent of India’s total power exports to Bangladesh, which was 11,934 million units. In terms of value, India’s power exports to Bangladesh exceeded $1 billion, as per media reports.
Bangladesh and India have the power sector as one of the key sectors of bilateral cooperation. The Adani Group had constructed the Godda thermal plant in Jharkhand exclusively to supply power to Bangladesh. However, India recently modified a law, enabling the company to sell power in the domestic market.
The recent legislative changes are attributed to the conflict about Adani Group sending a letter that Adani Group had sent to the Bangladesh government over its unpaid USD 800 million power supply bill in September. The company recently sent a letter to the Bangladesh government over “unpaid” dues, while Bangladesh’s state-run Power Development Board claimed that they had already paid USD 150 million despite its dollar crisis and was expecting to pay the full amount.