Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, has said that the government will not hesitate to cancel the contract with Adani if any irregularities or corruption are proven.
He made the comments at a press conference on Sunday after a meeting with the national committee formed to review contracts executed under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010.
He said the contracts clearly state that no corruption has occurred, but if proven otherwise, cancellation is possible.
“Verbal assurances will not be accepted by the courts; there must be proper justification,” he added.
Professor Mushtaq Husain Khan, a member of the committee, noted that as these are sovereign contracts, they cannot be cancelled arbitrarily.
He warned that cancelling the contracts could result in substantial fines from international courts.
He also said that widespread corruption in the power sector has contributed to rising electricity prices, which are currently 25% higher than in comparable countries. Removing subsidies could push the increase to 40%.
Economist Dr Zahid Hussain observed that electricity production increased fourfold between 2011 and 2024, but payments rose more than elevenfold, from $638 million to $7.8 billion. “This abnormal rise is not due to any technical reasons,” he said.
Dr Shahdeen Malik added that while there are legal grounds to cancel the contracts, taking the matter to an international court could trigger claims of up to $5 billion.
He stressed that the government must weigh the risks before making a decision.