Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Bangladesh's new government has decided to continue the power purchase agreement with Adani Power signed in 2017, which supplies about 1,400 MW of electricity, roughly one tenth of the country's daily demand. Despite past criticism over cost and fairness, authorities are prioritising stability and reliable electricity supply. Outstanding dues from previous years have been progressively cleared, helping normalise operations. While the Adani deal remains in place, the government is reviewing other private power contracts to ensure balanced and sustainable terms for the energy sector, addressing past concerns about transparency and costs.
Bangladesh's government has confirmed it will maintain the existing power purchase agreement with Adani Power, initially signed in 2017, which remains a key source of electricity for the country. The Minister of Power, Energy, and Mineral Resources indicated that there is no plan to cancel the pact, despite previous criticism over its terms. Some observers and opposition figures had earlier argued that the agreement was financially imbalanced, citing high costs and one-sided provisions. Advertisement
The arrangement ensures the supply of around 1,400 megawatts (MW) of electricity daily, covering roughly ten per cent of Bangladesh's total electricity demand, which averages 14,000 MW per day. This supply contributes significantly to the national grid and complements domestic generation, while imports account for about 15-17 per cent of overall electricity. Analysts note that maintaining the contract helps avoid disruptions in power supply that could impact industries and households.
Outstanding payments under the agreement had been a concern in previous years. At one point, arrears had built up significantly, leading to delays and discussions between the government and Adani Power. Partial settlements and a major payment of USD 437 million helped regularise dues and restore stability to operations. This step allowed uninterrupted electricity supply while also rebuilding trust between the parties involved.
The minister also mentioned that, while the Adani Power agreement will continue, the government plans to review other private power contracts. This review aims to ensure more balanced terms, sustainable pricing, and better long-term energy security. Observers suggest that such measures are intended to address past concerns about transparency, cost efficiency, and fairness in private sector agreements.
Bangladesh's energy sector has previously faced criticism for signing high-cost international agreements. The continuation of the Adani deal reflects a careful approach to maintaining reliable electricity while gradually examining other contracts for improvements. This approach aims to secure the country's energy needs without risking sudden disruptions or legal disputes.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
