Power purchase agreement with Adani Group to be reviewed: Minister

The government is taking a tougher stance on the power purchase agreement signed with India’s Adani Power, amid concerns over unusually high pricing.

Authorities are now considering reviewing the deal either through international arbitration or bilateral negotiations.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood disclosed the development in parliament on Thursday while responding to a question from Chattogram-15 Member of Parliament Shahjahan Chowdhury.

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The minister said that during the tenure of the interim government, a national committee headed by a retired Supreme Court judge was formed to review the agreement signed in 2017 with Adani Power (Jharkhand) Limited. The committee included energy experts, legal specialists, economists, and chartered accountants who conducted a detailed review of the contract.

According to the committee’s findings, the electricity tariff set in the agreement—signed during the previous Bangladesh Awami League government—was significantly higher than both domestic and international market rates at the time. As part of the review process, the committee also sought opinions from international legal experts on cross-border agreements.

Quoting the national committee, the minister said the contract has become a burden due to its unusually high costs and restrictive conditions. He said the government is currently considering two possible options: seeking resolution through an international arbitration court regarding disputed provisions, or initiating direct bilateral discussions with Adani Power to revise the terms of the agreement and reduce electricity prices.

The minister added that based on the committee’s recommendations, the government will take all necessary steps to safeguard national interests.

The 25-year agreement signed in 2017 provides for electricity supply to Bangladesh from Adani’s power plant located in Jharkhand, India.

However, the deal has faced public scrutiny since its inception over concerns about transparency and pricing.