Bangladesh had formally written to India’s Adani Power to renegotiate the power purchase agreement and consider a discount on the current electricity rate.
But Adani Power said in a regulatory filing that it is not renegotiating the agreement, reports US daily The Washington Post.
According to the report, Adani Power briefed the securities and exchange board of India on 3 February that Bangladeshi officials are seeking a discount on electricity purchased from the power company owned by Gautam Adani.
But the Indian power company is not renegotiating the power purchase agreement with Bangladesh, added the filing which was made public on Tuesday. The Washington Post contacted the spokeswoman of Adani, Varsha Chainani, for further comment, but she declined.
Bangladesh signed the deal with Adani Power in 2017. As per the agreement, Adani set up a power plant in the Godda district of Jharkhand state in India and is all set to export electricity to Bangladesh for the next 25 years.
The Washington Post obtained a copy of the confidential 163-page power purchase agreement and found some unusual terms and conditions there.
It reported that the deal mentions no price ceiling on coal, meaning that Adani — who is likely to import coal for the power plant from his own overseas coal mines via his own shipping network and coal-handling ports — could charge Bangladesh an even steeper price.
Also, Bangladesh has to pay a higher price for Adani electricity, compared to that of other power plants.
The Bangladeshi officials have recently expressed unease about the deal with Adani and have hoped for renegotiated terms. But Adani Power made its stance clear through the regulatory filing.