Power Struggle: The Clash Between Bangladesh and Adani Power

Bangladesh accuses Adani Power of breaching a contract by withholding tax benefits. The deal involves power supply from Adani's plant and faces scrutiny against political and financial backgrounds. Bangladesh seeks renegotiation citing domestic capacity and unresolved payments while a court investigates the arrangement.

The interim government of Bangladesh is embroiled in a dispute with energy supplier Adani Power over breaches of a multi-billion-dollar agreement, according to documents. Central to this disagreement is Adani's withholding of tax benefits received from New Delhi, a key component of their agreement.

Billionaire Gautam Adani's company signed a contract with Bangladesh in 2017 to supply power from a coal-fired plant. However, the deal, awarded without a tender, is reportedly costing Bangladesh more than other coal agreements. Since July 2023, Bangladesh has fallen behind on payments, leading to tensions.

The dispute escalates amidst revelations of a related U.S. bribery charge and a Bangladesh court's investigation into the agreement's hurried negotiation. Despite Adani Power's assertion of fulfilling contractual obligations, tensions over tax benefits and power tariffs persist, with Bangladesh considering legal and financial recalibrations.

(With inputs from agencies.)