2024-11-19 20:48:48 :
Bangladesh’s High Court ordered the establishment of a high-level inquiry committee composed of international energy and legal experts to re-evaluate all power-related agreements with the Adani Group, local news portal Business Standard reported on Tuesday, November 19.
A bench of Justices Farah Mahbub and Debasish Roy Chowdhury has reportedly ordered the cabinet secretary to constitute the committee within a month and submit it to the court within the next two months Report.
Adani Power shares closed down 0.47% $Tuesday 524.10′, compared to $The previous market close was 526.60.
The court, while hearing the petition, asked why directions should not be issued to cancel the lopsided agreement with the Adani Group. It also requires documents related to the signing of the deal to be provided within a month.
Lawyer M Abdul Qayyum, representing the petitioner, filed a writ in the high court seeking cancellation of all power deals with the Adani Group. Adani signed a 25-year power purchase agreement in 2017; the report said that at that time, Bangladesh did not operate imported coal-fired power plants.
Adani Bangladesh power supply
Adani Group’s Bangladesh power is provided by a 1,600 MW power plant in Jharkhand. The report quoted a Bangladesh Power Development Board official as saying that the cost of electricity was US$0.1008 per unit or Tk 12 per unit.
This rate is 27% higher than that of other private manufacturers in India and 63% higher than that of state-owned Indian factories.
After Adani Power cut electricity supply in Bangladesh by half to resolve outstanding bills, it also set a deadline of November 7 to cut power supply if outstanding payments are not cleared.
Bangladesh reportedly owes Adani nearly $850 million. According to reports, Adani Group later clarified that full payment was not requested within seven days.
power shortage
Even with partial payments to Adani Group, Bangladesh still faces power shortages, raising the risk of blackouts, Bloomberg reported on Tuesday.
Adani Power has received a $170 million letter of credit, easing pressure on lenders, the agency said, citing two people familiar with the matter. Officials said partial payments would not resolve the crisis but the company would not stop supplies for now pending negotiations with lenders to the Godda thermal power plant in Jharkhand state.
“The payment should have been made by this time,” Bangladesh Bank Governor Ahsan H Mansur reportedly said in a phone interview on Friday. Mansur said earlier this week that the central bank ” Payment instructions issued”.
Adani electricity supply accounts for nearly 10% of Bangladesh’s total supply. The power company further cut supply to 500 megawatts on Thursday after earlier cutting supply to 700 megawatts, according to data collected by Bangladesh Power Grid cited in news reports.
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