Bangladesh to Hire Legal Firm for Adani Power Deal Review; Sri Lanka’s Cabinet to Decide on Wind Project

New Delhi: Bangladesh has taken significant steps to reassess its power generation contracts with Adani Group, particularly concerning a $1 billion deal for a coal-fired plant in Godda, Jharkhand. In the wake of allegations against Adani Group officials, including the indictment of chairman Gautam Adani in the U.S. for offering bribes, the Bangladesh government has decided to hire a reputed legal and investigative firm to assist in reviewing multiple power agreements signed during Sheikh Hasina’s tenure. The move could lead to renegotiations or even cancellations of these contracts.

The National Review Committee in Bangladesh has begun reviewing several large-scale power projects, including the controversial Adani Godda plant. The committee, led by Justice Moyeenul Islam Chowdhury, aims to ensure that all investigations align with international standards for arbitration and negotiations. The interim government has already set up a high-level inquiry team to assess the 25-year Power Purchase Agreement (PPA) between Adani Power and the Bangladesh Power Development Board (BPDB), signed in 2017.

Meanwhile, in Sri Lanka, the government is still reviewing Adani’s Green Energy Ltd.’s (AGEL) wind power project. The proposal for the wind power plants in Mannar and Pooneryn will be submitted to the Sri Lankan Cabinet for final approval. The Sri Lankan government is keen to evaluate the financial and environmental impacts of these projects, especially given international scrutiny over Adani’s business practices.

Adani’s investments in both countries are significant, with India’s power exports to Bangladesh totaling over $1 billion, nearly 10% of its total exports to the neighboring country. The Godda plant alone supplies about 7-10% of Bangladesh’s power needs.

Key Highlights:

• Bangladesh’s Review: Bangladesh to hire a legal firm to review Adani’s power contracts, potentially leading to renegotiations or cancellations.
• Sri Lanka’s Cabinet Review: Sri Lanka’s government to evaluate Adani’s wind power project with a focus on financial and environmental factors.
• Adani’s Regional Influence: Adani’s power plants supply a substantial portion of Bangladesh’s electricity, amounting to a significant portion of India’s power exports.