Bangladesh's High Court ordered the formation of a high-level enquiry committee comprising international energy and law experts to reevaluate all electricity-related agreements with the Adani group, The Business Standard, a local news portal, reported on Tuesday, November 19.
The bench of Justices Farah Mahbub and Debasish Roy Chowdhury has reportedly ordered the cabinet secretary to form the committee within a month and submit the report to the court in the next two months.
Adani Power shares closed 0.47 per cent lower at ₹524.10 on Tuesday', compared to ₹526.60 at the previous market close.
The court, while hearing a petition, asked why instructions should not be given to cancel the uneven agreements made with the Adani group. It also asked for the documents related to the signing of the deal within a month.
Barrister M Abdul Qayyum, representing the petitioner, filed the writ in the High Court asking for the cancellation of all electricity deals with Adani group. Adani signed the 25-year power purchase agreement in 2017; at that time, no imported coal-based power plants were operational in Bangladesh, as per the report.
Adani group's Bangladesh power is supplied from Jharkhand's 1,600 MW power plant. The cost of power is $0.1008 per unit or Tk12 per unit, a Bangladesh Power Development Board official was quoted as saying in the report.
This rate is 27 per cent higher than the rate of India's other private producers and as much as 63 per cent more than the Indian state-owned plants.
After Adani Power cut the Bangladesh power supply by half over the unpaid dues, the company also set a deadline of November 7 to switch off the flow of electricity if there was no clarity on the settlement of the outstanding amount.
Bangladesh reportedly owes Adani almost $850 million. Adani group later clarified that it had not demanded the full payment in seven days, as per the report.
Bangladesh continues to face a shortage of electricity, increasing the risk of blackouts, even after making a partial payment to Adani group, according to a Bloomberg report on Tuesday.
Adani Power has received a letter of credit for $170 million, easing pressures from lenders, reported the agency, citing two people aware of the development. The partial payment doesn’t resolve the crisis, but the company won’t halt supplies for now, pending talks with the lenders of the Godda thermal plant in Jharkhand, the officials said.
“Payments should have been made by this time,” Ahsan H Mansur, governor of Bangladesh Bank, said in a phone interview on Friday as per the report. The central bank “issued an instruction for the payment”, Mansur had said earlier this week.
The Adani electric supply accounts for nearly 10 per cent of Bengladesh's total supply. The power company reduced its supply further to 500 megawatts on Thursday after cutting it to 700 megawatts earlier, as per the data collected from Power Grid Bangladesh cited in the news report.
