BPDB team to visit India to resolve issues if trial run succeeds

A delegation of the Bangladesh Power Development Board (BPDB) will visit India to discuss resolving controversies regarding power import from Adani Group if an ongoing trial run completes successfully, according to sources familiar with the matter.

Authorities concerned are already discussing various issues with the group in this regard, according to sources at BPDB and the Power Division under the Ministry of Power, Energy and Mineral Resources.

Adani Power, a subsidiary of Adani Group, has been supplying electricity on a trial basis to the national grid of Bangladesh from its power plant in Godda, Jharkhand since March 9.

During the experimental period till March 25, Bangladesh will get 750 MW electricity from Adani’s coal-fired power plant located on 425 hectares of land in an Indian village about 100 kilometres from the Bangladesh border. The power is being delivered through a dedicated transmission line.

The contract with Adani to import power from its plant drew heavy criticism in the country due to the high cost of electricity.

As per the power purchase agreement signed with Adani Power on November 5, 2017, BPDB will purchase at least 34 per cent of the power generated by the plant over a 25-year period.

According to sources, the Adani Group demanded $400 per tonne of 4600 calorific low-quality coal to operate the plant, while the price of this quality coal in the international market is below $170.

Sources also said at $400 per tonne of coal, per unit cost of electricity from Adani will cost more than Tk 25, including capacity payment or plant rent. No private power plant in Bangladesh has been given such a large amount of power plant rent. On top of it, Adani has been given several benefits which have not been given to anyone else.

Furthermore, the criticisms intensified after US short-seller investment group Hindenburg Research recently accused the Adani Group of using offshore tax havens to manipulate stock prices.

Experts at home and abroad criticised the deal as extravagantly expensive and overtly favouring Adani Power. They also called on authorities concerned to review the deal.

Meanwhile, according to sources familiar with the matter, a team of BPDB has already visited India to discuss several issues with Adani on March 13.

When asked about this, Shameem Hasan, director of public relations of BPDB, refused to provide any details but acknowledged that discussions are ongoing.

He said, “Discussion is ongoing. I cannot say any more than that”

However, he added, “Adani’s power supply trial-run cannot be called successful as of yet. During the trial period, 30 to 50 MW of electricity will be supplied to Bangladesh every day. If the trial run is successful, a delegation will go to India to finalise some issues.”

According to government data, Bangladesh will get 1,500 MW power from Adani’s power plant in Jharkhand without any investment. With a production capacity of 1,498 MW, the first of the two units of the coal-fired power plant is already in production. The capacity of the first unit is 660 MW, all of which can be imported by Bangladesh.