HC orders forming high-level inquiry committee to reevaluate Adani power deals
A 25-year power purchase agreement was signed with Adani in 2017
The High Court today (19 November) ordered the formation of a high-level inquiry committee by incorporating international energy and legal experts as its members to reevaluate all electricity-related agreements with India's Adani Group.
Acting upon a writ petition, the court also directed the cabinet secretary to set up the panel within a month and to submit its report within the next two months.
Additionally, the bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury issued a rule, asking the authorities to explain why instructions should not be given to cancel the lopsided agreements with Adani.
Keep updated, follow The Business Standard's Google news channel
The High Court also asked for the documents related to the negotiations conducted during the signing of the agreements within a month.
Barrister M Abdul Qayyum represented the petitioner at the hearing, assisted by Barrister Moniruzzaman, Advocate Afroza Firoz Mita, and Barrister Kamarun Mahmud Mita.
On 13 November, Barrister Qayyum filed the writ petition with the High Court, seeking the cancellation of all electricity agreements with the Adani Group.
A 25-year power purchase agreement was signed with Adani in 2017, at a time when no imported coal-based power plants were operational in the country.
Electricity is supplied to Bangladesh from Adani's 1,600MW power plant located in the eastern Indian state of Jharkhand.
The electricity supplied by Adani costs Bangladesh about Tk12 ($0.1008) per unit, according to an official from the Bangladesh Power Development Board, citing the latest audit report for the fiscal 2023-24.
This cost is 27% higher than the rate charged by other private producers in India and up to 63% more than that of Indian state-owned plants.
Earlier this month, after reducing power supply to Bangladesh by half over unpaid dues, Adani Power set a deadline of 7 November to cease electricity supply if there was no clarity regarding the settlement of the outstanding amount.
However, later in the day, the Adani Group issued a clarification, stating that it had not demanded full payment within seven days.
Currently, Bangladesh owes Adani around $850 million, according to a report published today.
