Adani Power has said that it has received no indication that the Bangladesh government is considering a review of its power purchase agreement, following a Reuters report suggesting the country is seeking to renegotiate the deal.
Reuters reported on Sunday that Bangladesh is pushing to significantly lower the prices outlined in its agreement with Adani Group, unless a court cancels the 25-year deal.
The High Court had recently ordered an expert committee to review the contract, under which Adani supplies power from a $2 billion coal-fired plant in eastern India.
The investigation comes amid ongoing allegations against Adani Group founder Gautam Adani, who is facing accusations from US authorities of being involved in a $265 million bribery scheme in India, charges he has denied.
This is further compounded by scrutiny in India, where a state is reviewing a power deal with the group, and by France’s TotalEnergies, which has paused its investments in the company.
The Bangladesh deal, signed in 2017 under former primer minister Sheikh Hasina, who was ousted, has been a source of tension. Adani Power is currently seeking over $800 million in dues from Bangladesh while continuing to supply 700 to 750MW of power out of the plant's 1,400-1,500MW capacity, despite significant financial concerns that are threatening the sustainability of plant operations.
A spokesperson for Adani Power emphasized that the company remains in regular communication with senior officials from Bangladesh's Power Development Board (BPDB) and the government, who have reassured the company that outstanding payments will be settled soon.
The 1,600MW plant, which began operations last year, uses expensive imported coal to meet about 10% of Bangladesh’s energy demand. The High Court's investigation into the power deal is expected to be concluded by February, at which point the court will issue its findings.