Aimed at knowing the terms of agreements and checking whether the price being paid for power is justified, the Indian businesses are set to be scrutinised by the interim government of Bangladesh, as per media reports.
The country’s government is keen to scrutinise businesses including the Adani Group which exports power to Bangladesh from its unit in Jharkhand under a 2017 agreement.
As per the media reports, a top member of the interim government who did not wish to be named stated that the scrutiny of Indian businesses, including the Adani Group will be done in order to understand the kind of contracts that have been signed, its terms and conditions. The member highlighted that the country cannot have a foreign company not follow the law.
While the investigations will not be seen as a targeting of Indian businesses, they would be carried out to know the nature of work they are doing in the country and how much they are being paid to determine its justification, as per the media reports which quoted the senior functionary.
Adani Power (Jharkhand) or APJL entered into a 25-year agreement with the Bangladesh Power Development Board in November 2017 related to the purchase of 1,496 megawatts (MW) (net) power. As per the agreement, 100 per cent of electricity produced by the AJPL’s Godda plant was to be bought by Bangladesh’s board. In 2023-24, the plant exported around 7,508 million units of power to Bangladesh.
Media reports state that Adani Power continues to supply power to Bangladesh despite their being massive outstanding. Another media report cited that Adani had written to the interim government of Bangladesh that the backlog of overdue payments had become unsustainable. Adani power is yet to receive over USD 500 million from the board, as per reports.
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