Adani Power's coal-fired power plant, which had been contracted to sell all its output to Bangladesh, is now permitted to supply the domestic market following an amendment to India's power export regulations. This change is intended to help the company mitigate political risks in Bangladesh.

According to an internal memo from the federal power ministry dated August 12 and reviewed by Reuters, the 2018 guidelines governing generators supplying electricity exclusively to a neighboring country have been updated. Currently, only Adani Power?s 1,600 megawatt (MW) Godda plant in eastern Jharkhand state is under contract to export all of its power to a neighbouring country.

The memo indicates that the Indian government may allow such generating stations to connect to the Indian grid to facilitate power sales within India if there is sustained non-scheduling of all or part of their capacity. This change follows the recent departure of long-time Prime Minister Sheikh Hasina from Bangladesh due to violent protests related to government job quotas, and it could also benefit future projects with export-only contracts.

Bangladesh is currently facing instability and vandalism, with a caretaker government prioritizing improvements in law and order.

The amendment also permits power sales to the local grid in cases of delayed payments. In July 2023, Adani Power had described the plant as a "shining example of India-Bangladesh cooperation" following its full-load commissioning and a meeting between Chairman Gautam Adani and Hasina. An Adani Group spokesperson stated that the amendment would enhance the overall availability of power in India and help meet the increasing electricity demand across the country.