Adani power deal very important, progressing for Bangladesh: State Minister Shahriar in India
State Minister for Foreign Affairs Md Shahriar Alam has claimed that the $4.5 billion Adani Power Project is an "important" one for Bangladesh and the government has no "any issues" with the Indian conglomerate.
Shahriar, while speaking with Indian media outlet ABP Live on Friday (3 March), said, "We are not having any issues with the Adani (power) project. It is done and it is moving.
"It [the project] is progressing...(Power purchasing agreement is agreed) That's all agreed. I don't have the details. I am not the line minister. But it's all agreed and it's moving."
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"It's a very important project for Bangladesh," the state minister furthered refuting claims that the project will not go through.
The much-talked-about power deal was signed between the state-run Bangladesh Power Development Board (BPDB) and Adani Power in November 2017.
The deal also entailed the construction of a $1.7 billion power manufacturing unit in Jharkhand India's Godda district for supplying power to Bangladesh.
As per the PPA with Adani, the price of coal for the 1,600MW Godda Plant in Jharkhand will "pass-through" meaning Bangladesh will have to pay the market price for coal imports, without any price ceiling or discount provision.
Adani Power recently sent a request for BPDB to issue the demand note, where the coal price is quoted at $400 per metric tonne - far above what BPDB officials believe it should be amid the present state of the global market.
BPDB officials found that Adani quoted prices some 60% higher compared to the cost of coal with the same heating value that has been used in the Payra 1,320MW Thermal Power Plant in Patuakhali.
The cost of electricity for this power plant, which is scheduled to start commercial operation this week, has been widely criticised by both national and international media.
Therefore, the state-owned single buyer of electricity sent a letter to the Adani Group seeking a revision to the existing PPA following the request it received in relation to opening LCs (in India) to import the coal that will be used as fuel for the 1,600 MW plant in Jharkhand.
Meanwhile, the Power Division formed a nine-member committee headed by the Power Division Secretary Md Habibur Rahman.
As per the assignment, the committee is now working to find out the mechanism to keep the coal price competitive and cost-effective.
