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Adani Power’s Export-Only Plant Cleared to Supply India as Bangladesh Faces Crisis

Adani Power's 1,600 megawatt Godda plant in Jharkhand is the only plant in India contracted to export 100 per cent of its power to a neighboring country, Bangladesh

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Adani Power's coal-fired plant, which was originally contracted to supply all its electricity to Bangladesh, can now also sell power within India. This change in India's power export rules allows the company to reduce its reliance on Bangladesh, offering a safeguard against potential political risks there.

As per a memo from India's federal power ministry dated August 12, the 2018 guidelines for power plants that supply electricity exclusively to neighboring countries have been amended.

Currently, Adani Power's 1,600 megawatt Godda plant in Jharkhand is the only plant in India contracted to export 100 per cent of its power to a neighboring country, Bangladesh.

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Last year, the Gautam Adani-led conglomerate even called the plant a "shining example of India-Bangladesh cooperation."

The memo states that if such a plant is not fully scheduled to export its power, the Indian government may permit it to connect to the Indian grid and sell electricity within the country, according to a report by Reuters.

"The government of India may permit connection of such generating station to the Indian grid to facilitate the sale of power within India in case of sustained non-scheduling of full or part capacity," the memo read.

Bangladesh Crisis

The decision comes nearly a week after Bangladesh’s longtime Prime Minister Sheikh Hasina fled the country following deadly protests over government job quotas.

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Under the existing quota system, 30 per cent of government job positions at all levels in Bangladesh are reserved for students who are descendants of those who fought in the country's war of independence. After Prime Minister Sheikh Hasina fled the country, Nobel laureate Muhammad Yunus was sworn in as the head of an interim government in Bangladesh.

“Violence is our enemy. Please don’t create more enemies. Be calm and get ready to build the country," Yunus stated in his speech.

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