Bangladesh to review power purchase agreement with Adani Power
POWER & RENEWABLE ENERGY

Bangladesh to review power purchase agreement with Adani Power

The Bangladesh Power Development Board (BPDB), the government agency in charge of developing Bangladesh's power sector, has requested that the power purchase agreement (PPA) it signed with Adani Power for importing electricity from its thermal power plant in Jharkhand, India, be revised. According to reports, the primary reason for the change is a disagreement over the price of coal to be used as fuel for the project.

This news, following the Hindenburg Report, demonstrates that Adani is not only fighting on a single front, but conflicts are raging on multiple fronts. It is a significant setback in the midst of the current turmoil.

According to sources, BPDB has already written to the Adani Group, asking the opening of Letters of Credit (LCs) in India in order to purchase coal. The imported coal is expected to power the 1,600 MW facility in Jharkhand.

Adani Power need a demand note from BPDB before importing coal for its thermal power plant in the Godda district of Jharkhand, as practically all of the power generated by the project will be sent to Bangladesh.

Bangladesh will pay for the cost of importing the coal, including transportation, with the sum reflected in the Power Purchase Agreement's rate. However, Adani Power recently requested that BPDB produce the demand note, with the coal price listed at $400 per metric tonne, which BPDB officials say is far too excessive given the current status of the worldwide market.

According to officials, the ensuing letter constitutes BPDB's formal request for the PPA to be reviewed and the tariff structure to be changed before it can begin importing electricity.

BPDB has raised concerns over a steep bill for the purchase of coal from Adani Power, as the Power Purchase Agreement (PPA) signed with the Indian firm does not contain a provision for discounts.

Also Read
SEBI introduces new regulatory framework for depository receipts
Sitharaman urges to establish guidelines for renewable energy

The Bangladesh Power Development Board (BPDB), the government agency in charge of developing Bangladesh's power sector, has requested that the power purchase agreement (PPA) it signed with Adani Power for importing electricity from its thermal power plant in Jharkhand, India, be revised. According to reports, the primary reason for the change is a disagreement over the price of coal to be used as fuel for the project. This news, following the Hindenburg Report, demonstrates that Adani is not only fighting on a single front, but conflicts are raging on multiple fronts. It is a significant setback in the midst of the current turmoil. According to sources, BPDB has already written to the Adani Group, asking the opening of Letters of Credit (LCs) in India in order to purchase coal. The imported coal is expected to power the 1,600 MW facility in Jharkhand. Adani Power need a demand note from BPDB before importing coal for its thermal power plant in the Godda district of Jharkhand, as practically all of the power generated by the project will be sent to Bangladesh. Bangladesh will pay for the cost of importing the coal, including transportation, with the sum reflected in the Power Purchase Agreement's rate. However, Adani Power recently requested that BPDB produce the demand note, with the coal price listed at $400 per metric tonne, which BPDB officials say is far too excessive given the current status of the worldwide market. According to officials, the ensuing letter constitutes BPDB's formal request for the PPA to be reviewed and the tariff structure to be changed before it can begin importing electricity. BPDB has raised concerns over a steep bill for the purchase of coal from Adani Power, as the Power Purchase Agreement (PPA) signed with the Indian firm does not contain a provision for discounts. Also Read SEBI introduces new regulatory framework for depository receipts Sitharaman urges to establish guidelines for renewable energy

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code