Bangladesh: Adani ‘committed’ to export power even as India rejigs rule

Adani Power has asserted its commitment to continue supplying electricity to Bangladesh, adding that the Indian government’s recent amendment to power export rules will not have an impact on existing contract.

“Adani Power is committed to fulfil contractual obligations as per Bangladesh Power Development Board’s demand schedule and provisions of the power purchase agreement and would look forward to continuing reciprocal fulfilment,” a statement from Adani Power said, according to Reuters.

The Adani Power statement comes in the wake of a new rule by the government, which allows companies with 100 per cent power export contracts to sell electricity in the domestic market, too. The government, however, does not impose any obligation on India to buy electricity from the concerned company.

Adani Power’s 1.6 gigawatt (GW) plant in Godda, Jharkhand, is under contract to export 100 per cent of the electricity it produces to Bangladesh.

The government of India’s new rule came around a week after former Bangladesh Prime Minister Sheikh Hasina Wazed fled her country and sought refuge in India, following nearly three weeks of violent students’ protests over job reservation quotas allotted to families of freedom fighters who fought in the 1971 Bangladesh war. The riots have claimed around 560 lives.

The Indian government’s new rule could have a lasting impact on the business of electricity production in the country, with major power exporters of India getting a chance to consolidate their manufacture and trade base in the domestic market.

Meanwhile, violent attacks have also been reported on Indians and Hindu temples in Bangladesh after India gave refuge to Sheikh Hasina. The effort to restore peace continues in the riot-torn country, where Nobel laureate Muhammad Yunus was sworn in as head of an interim government after Shekh Hasina’s fleeing. Yunus’ interim government has received the backing of the country’s military forces and students bodies.

The Squirrels reported earlier how Bangladesh is a significant market for over a dozen listed Indian companies. These include Marico, Life Insurance Corporation (LIC) of India, Pearl Global Industries, Emami, Britannia, Bajaj Auto, Dabur, Asian Paints, Godrej Consumer Products, Pidilite, Jubilant Foodworks, Bayer, GCPL and Vikas Lifecare.