Adani plant allowed to sell Bangladesh-bound power in India after rules amended

An Adani Power, opens new tab coal-fired power plant under contract to sell all its output to Bangladesh can now supply the domestic market as the government has amended its power export rules.

An internal federal power ministry memo, dated 12 August and seen by Reuters, amends 2018 guidelines governing generators supplying electricity "exclusively to a neighbouring country".

Currently only one plant in India - Adani Power's 1,600 megawatt (MW) Godda plant in eastern Jharkhand state - is under contract to export 100% of its power to a neighbouring country.

The memo says "the government of India may permit connection of such generating station to the Indian grid to facilitate sale of power within India in case of sustained non-scheduling of full or part capacity".

The sale of power to the local grid might also be allowed if there is a delay in payments, it said.

The move, which comes nearly a week after longtime Prime Minister Sheikh Hasina fled Bangladesh after deadly protests, could also benefit future projects where all output is locked into export contracts.

An Adani Group spokesperson did not immediately respond to a request seeking comment.

A senior industry official said the move in intended to protect Indian interests, including energy security.

"If a plant has idling capacity and the country needs power, why should you stop it supplying to the local grid? It is also Indian banks who paid for it," said the official, who declined to be identified as he was not authorised to speak on the issue.