Shahriar: Adani power project very important, progressing

Amid growing controversy over purchasing electricity from Adani Group, State for Foreign A airs Md Shahriar Alam claimed that there was no problem with the Indian conglomerate and that the power plant project is an “important” one. “We are not having any issues with the Adani (power) project. It is done and it is moving,” he told ABP Live, an Indian media outlet.

“It (the project) is progressing ... (Power purchasing agreement is agreed) That's all agreed. I don't have thedetails. I am not the line minister. But it's all agreedand it's moving,” he added.

“It's a very important project for Bangladesh,” he added, refuting claims that the project will not go through.

The deal was signed between Adani Power and the state-run Bangladesh Power Development Board (BPDB) in November 2017.

The deal also entailed the construction of a $1.7 billion power manufacturing unit in Jharkhand's Godda district for supplying power to Bangladesh.

The Bangladesh government has sought a revision to the power purchase agreement (PPA) it had signed with Adani Power Ltd for importing electricity from its thermal power plant in Jharkhand, India in 2017.

The BPDB sent a letter to the Adani Group following a request it received in relation to opening LCs (in India) to import the coal that will be used to  re the 1,600 MW plant in Jharkhand.

Since practically all the power generated by the plant will be exported to Bangladesh for 25 years, Adani Power requires a demand note from BPDB that it can present to Indian authorities before opening LCs against the coal import. The cost incurred to import the coal, including transport from port to plant, will ultimately be borne by Bangladesh, with the price factored into the PPA's tari structure.

Adani Power recently sent a request for BPDB to issue the demand note, where the coal price is quoted at $400 per metric ton (MT) -- far above what BPDB officials believe it should be given the present state of the international market.

A number of BPDB officials said that it was the absence of a provision for discounts on the purchase of coal in the PPA signed with Adani Power, that allowed the Indian  rm to quote such a steep bill for the coal.