The unprecedented political crises in Bangladesh that led to the resignation of its Prime Minister Sheikh Hasina on August 5 has brought focus on India’s first transnational power supply project operated by billionaire Gautam Adani-led Adani Power Ltd.
In November 2017, Adani Power signed a 25-year power purchase agreement (PPA) with the Bangladesh Power Development Board to supply 1,496 megawatts (MW) from its Godda plant in Jharkhand. The Godda power project is India’s first commissioned transnational power project, where 100 per cent of the generated power is supplied to another nation. The ultra-supercritical thermal power plant was commissioned in June 2023 and has been providing power to Bangladesh since then.
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On Tuesday, shares of Adani Power fell 2.10 points or 0.30 per cent to settle at Rs 688.75 on the NSE. In the last five sessions, the stock has fallen nearly 7 per cent.
"Adani Power has a PPA with Bangladesh's power distribution utility, Bangladesh Power Development Board (BPDB), to meet their country's power requirements. In its normal course of business, BPDB is scheduling the power supply to meet their nation's demand and as per that schedule, Adani Power continues to supply power to the Bangladesh power utility without any disruption," Moneycontrol quoted an Adani Power spokesperson as saying.
“Adani Power will follow BPDB’s schedule and adhere to the provisions outlined in the PPA between the two utilities,” the company said in a statement.
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In an investor call on May 2 after Adani Power’s March quarter earnings, Shailesh Sawa, group head of regulatory engagement said that the BPDB’s current outstanding dues stood at around $400 million, which is equal to four months of dues.
Monthly billing for the Bangladesh power contract is around $90 million on average, and the payments to Adani Power are denominated in dollars, Sawa added.
Adani Power management noted that the entire power of the Godda plant is going to Bangladesh. It is a dedicated power station to Bangladesh and is not even connected to the Indian grid.
Any shift in the stance of the new administration in Bangladesh could have a significant adverse impact on the project due to the outstanding dues and debt obligations incurred to set up the plant.
Bangladesh plunged into turmoil when Prime Minister Hasina suddenly resigned and fled the country on a military aircraft while the army had to intervene and announce an interim government to fill the power vacuum.
After the news of Hasina’s departure, hundreds broke into her residence, vandalising and looting the interiors, providing dramatic expression to the anti-government protests that have killed more than 300 people in a fortnight.
Later, Hasina landed at the Hindon airbase in Ghaziabad as part of her plan to go to London.
