Legal notice sent to govt seeking review, cancellation of all electricity deals with Adani

A legal notice has been sent to government officials seeking the review and cancellation of all electricity deals with India's Adani Group.

Barrister M Qayyum, a Supreme Court lawyer, sent the legal notice today (6 November).

The notice has been sent by post to the chairman of the Bangladesh Power Development Board and the secretary of the energy ministry.

Qayyum said if the process to review and cancel the contracts isn't started in the next three days, then a writ petition will be filed with the High Court.

The notice also called for a review committee consisting of energy and legal experts to give a detailed report.

A 25-year power purchase agreement was signed with Adani in 2017. At that time, no imported coal-based power plant was started in the country.

Electricity is supplied to Bangladesh from Adani's 1,600 MW power plant in the eastern Indian state of Jharkhand.

The Adani power costs Bangladesh about 12 taka ($0.1008) a unit, an official of the Bangladesh Power Development Board said, citing the latest audit report for financial year 2023-24.

That is 27% higher than the rate of India's other private producers and as much as 63% more than Indian state-owned plants.

Meanwhile, after slashing the power supply to Bangladesh by half over unpaid dues, Adani Power yesterday set a deadline of 7 November to switch off the flow of electricity if there is no clarity on settlement of the outstanding amount, reports Times of India.

Currently, Bangladesh owes Adani almost $850 million, said the report published today. 

Later in the day, Adani Group in a clarification said it has not demanded full payment in 7 days.