Bangladesh Faces Power Dilemma Amid Adani Pricing Dispute

Bangladesh may uphold a power purchase agreement with India’s Adani Power despite pricing concerns, due to supply needs and legal challenges. A government panel reviews past contracts for transparency. Talks to reduce tariffs appear as the only option. Rising dues amplify the issue amidst political changes in Bangladesh.

Bangladesh is likely to maintain a power purchase agreement with India's Adani Power despite pricing concerns, amid looming supply challenges and limited recourse for a successful legal challenge, according to informed sources.

This decision follows the new government's panel review of contracts signed by its predecessors, especially projects criticized for lacking transparency, including a 2017 deal with Adani's $2 billion power plant that meets a significant portion of Bangladesh's electricity needs.

Canceling the agreement poses difficulty due to the plant supplying nearly a tenth of the country's power. Adjusting the tariff through mutual agreement emerges as a potential solution, with Adani still supplying power despite mounting dues, while Bangladesh grapples with clearing payments amid a dollar shortage.

(With inputs from agencies.)