Adani Power in dispute with Bangladesh over power deal, accusations of breaching agreement

From Investing.com: 2024-12-18 21:07:11

Bangladesh accuses Adani Power of breaching a multi-billion-dollar agreement by withholding tax benefits from a power plant deal. Dhaka wants to renegotiate, as the deal costs more than other coal power agreements. Nobel laureate Yunus, in power after Hasina’s ousting, plans to use U.S. bribery scheme to press for resolution. (50 words)

Adani Power’s Godda plant, meant to serve Bangladesh, enjoys tax exemptions under the 2017 contract. Bangladesh estimates $28.6 million in potential savings if benefits were passed on. Despite letters urging Adani to remit benefits, BPDB officials have not received responses. Power minister Khan says savings will be a key discussion point. (50 words)

Yunus’s government has scrapped a law allowing non-competitive energy deals. A panel ordered to probe the Adani deal said it was negotiated hastily. Hasina fled to India and her son denies corruption allegations. Adani halved power supply over payment dispute, rejecting extension requests. BPDB says arrears are $650 million. (50 words)

Adani Power and Bangladesh dispute payment terms, with tariffs priced above market average. Bangladesh presses for lower tariffs, but Adani rejects, leading to halved power supply. The two sides are meeting soon, but arbitration may be needed. Bangladesh awaits investigation outcome before deciding next steps. (50 words)



Read more at Investing.com: Exclusive-Adani, under bribery scrutiny, pressed by Bangladesh to reopen power deal By Reuters