Bangladesh Interim Government to Review Power Deal with Adani Group

The interim government of Bangladesh, led by Mohammad Yunus, announced on Sunday, November 24, that it will review a controversial power agreement signed between the ousted Prime Minister Sheikh Hasina’s administration and the Adani Group. The agreement in question is related to the Godda thermal power plant, a 1234.4 MW coal-fired facility owned by a subsidiary of Adani Power Limited.

A review committee, formed by the interim government, has recommended a thorough investigation into all major power agreements signed during Hasina’s tenure from 2009 to 2024. The committee’s scope includes not only the Adani deal but also other large-scale agreements, including a 1320 MW coal-fired power plant operated by a Chinese company and various deals involving Bangladeshi business groups allegedly close to the Hasina government.

The Godda power plant, located in India, has been at the center of significant controversy since its inception. Critics, including political parties in Bangladesh, have claimed that the deal with Adani had ulterior motives, while experts argue that Bangladesh is purchasing power from the plant at an inflated price. The deal was first formalized in 2015 following Indian Prime Minister Narendra Modi’s visit to Bangladesh, with a subsequent agreement signed in 2017. However, in 2023, the Bangladesh Power Development Board (BPDB) formally requested that Adani Power revise the terms of the deal.

The review of these agreements marks a significant move by the interim government to scrutinize energy contracts signed by the previous administration, with particular attention being given to agreements that have been seen as financially burdensome for the country.