Power shift in Bangladesh prompts India to revise policy for Adani Power

The Union government has revised its guidelines on power exports, permitting Adani Power to redirect its output destined for Bangladesh to the domestic market. This decision comes as a response to the ongoing political unrest in Bangladesh, which has impacted the stability of the power supply.

The amendment, reported by Reuters, allows Adani Power’s 1600-megawatt plant in Jharkhand’s Godda district, which primarily supplies power to Bangladesh, to sell electricity within India under certain conditions. The guidelines now include provisions for connecting such generating stations to the Indian grid if there are delays in power scheduling or payments.

The move has sparked speculation that it may serve as a protective measure for Adani Power, a conglomerate known for its strong political connections, against the backdrop of disruptions in Bangladesh.

The revised guidelines come in the wake of criticism from various quarters over the high cost of power being sold to Bangladesh. Some experts have argued that Dhaka is paying an excessively high price for electricity from Adani Power, prompting calls from political parties in Bangladesh for a revision of the agreement.

The contentious deal between Adani Power and Bangladesh has been under scrutiny since its inception. The Bangladesh Power Development Board has previously expressed concerns about the coal prices stipulated in the agreement, suggesting that they are significantly higher compared to other sources.

The revision of these guidelines follows a history of high-profile dealings between the Adani Group and the Bangladeshi government, which began with a memorandum of understanding signed in 2015 shortly after a visit by Indian Prime Minister Narendra Modi.

Opposition parties in India have questioned Modi's involvement in the deal, adding to the controversy surrounding the power export arrangement.