Adani Received Support For Bangladesh Power Project
Bangladesh is still eager to continue the power purchase agreement which it had earlier signed with the Adani Group for supplying thermal power from the Adani Godda power plant in Jharkhand to Bangladesh. The global conglomerate has recently received its open support from a Bangladesh leader a post the attacks on its former CM, Sheikh Hasina, for various fraudulent activities.
Earlier, Bangladesh’s interim government led by Chief Advisor Muhammad Yunus was seeking to negotiate the 2017 deal which the Adani Group had signed with the Bangladesh government. However, looking at Bangladesh’s current situation, it is important that the power deal continues. This will ensure that there is a consistent supply of electricity in Bangladesh. The global business group’s power demands will also be met easily.
Adani Receives Support For The Continuance Of Power Deal In Bangladesh:
Bangladesh’s opposition party has recently acknowledged the importance of energy investment by Indian Industrialist Gautam Adani and his Group in meeting the growing electricity demands in Bangladesh, specially for the ongoing industrial developments which are taking place in different corners of the country. The party’s organising secretary Shama Obaid who also happens to be a well-known associate of the former Prime Minister Khaleda Zia has talked about the need for transparency and accountability in such projects.
On being asked about the Adani Group’s energy sector investment, he said that Bangladesh as a growing country requires a constant supply of energy for industrialisation of various purposes. The Adani Group has shown interest in making investments in energy projects in Bangladesh. This can turn out to be a positive thing for Bangladesh’s power situation. However, it is important to ensure that the deal signed in a transparent way and all the points of the agreement are carefully scrutinised before the deal is finalised.
Obaid also talked about his concerns about past instances of corruption under Sheikh Hasina’s reign. He mentioned that all future deals that are signed must only prioritise the interest of the people of Bangladesh. The people of Bangladesh need to know what’s in the agreement before they become a part of it. This has become important from what the country has experienced in the past.
The Adani Godda Project: A Testament To Adani’s Enhanced Control Over The Power Sector:
The Adani Group has been responsible for supplying power to Bangladesh for quite a while now. The company is known to operate the first transnational project in collaboration with Bangladesh. Adani Power Jharkhand Limited which is the wholly owned subsidiary of Adani Power Limited and a part of the diversified Adani Group achieved the commercial operations date (COD) for the second unit of its ultra-supercritical thermal power plant on 26th June 2023.
The reliability run test including the commercial operation test of the second unit of the Adani Godda power plant was completed on 25th June 2023. This was done in the presence of BPDB and Power Grid Corporation of Bangladesh. On 6th April 2023, the second unit of the power plant also having a capacity of 800 MW achieved its COD. The power supply from the Godda power plant to the Bangladesh grid helped enhance energy security. As per the power purchase agreement, Adani Power has been supplying 1,496 MW net capacity from its Godda power plant. The deal was signed in November 2017 for 25 years. The transmission takes place through a 400 KV dedicated transmission system connected to the Bangladesh grid.
The Various Controversies Surrounding The Adani Godda Project:
Amidst the ongoing protests in Bangladesh and the fleeing of the former CM Sheikh Hasina, the Adani Godda project became a subject of a lot of controversies. Because of the ongoing financial crisis, Bangladesh was no longer able to pay the dues for the power being supplied by the Adani Group. The Adani Group consistently urged the Bangladesh government to clear the dues. However, no actions were taken by the Bangladesh government.
So, the Adani Group was forced to stop the power supply from one unit of the power plant. This once again brought back energy scarcity in Bangladesh. This caused the Bangladesh government to once again look at the various terms of the agreement so that power purchase could continue in the state. Bangladesh has also decided to clear the dues gradually so that the power supply can continue and the conditions of the deal can be upheld.
Conclusion:
Although the Adani Godda project was met with a lot of challenges, the Adani Group still continues to supply power to the debt-ridden country. Once Bangladesh’s financial situation normalises and it is able to clear the dues, the Adani Group will once again be able to continue to supply electricity to Bangladesh in a streamlined manner. The terms of the agreement can also be upheld.
