Tag:Adani

Adani Power has indicated it intends to seek international arbitration, citing payment delays and disputes over tariff components, setting the stage for a contentious standoff between the Indian corporate conglomerate and a key South Asian neighbour.

The Bangladesh Power Development Board (BPDB) confirmed it transferred a record $437 million in June to settle mounting arrears with Adani Power Jharkhand Ltd (APJL), the Indian firm operating the 1,496-megawatt Godda Ultra Supercritical Thermal Power Plant in Jharkhand.

With Bangladesh’s energy demand rising and domestic generation under pressure, the power from APL’s Godda plant plays a vital role, particularly in northern regions. Any disruption in this supply could significantly impact industrial and residential consumers.

Adding to the complexity, the Power Grid Company of Bangladesh has yet to complete six substations critical for evacuating electricity generated at the Meghnaghat hub. Sources say these substations are unlikely to be ready before August.

Whether the two parties can bridge the gap and reach a mutually acceptable agreement remains to be seen. The Sri Lankan government's insistence on price revision and Adani’s re-affirmation of the initial terms, clearly sets the stage for a tense negotiation period.

There has been a raging debate in Sri Lanka on the deal, citing it as an expensive deal. The earlier government had agreed to purchase power from Adani’s 484-megawatt wind power project at a rate of 8.26 US cents per unit under a 20-year power purchase agreement.

Sri Lanka's earlier administration had agreed to purchase power from Adani’s 484-megawatt wind power project at a rate of 8.26 US cents per unit under a 20-year power purchase agreement. This agreement, announced in May 2023, triggered widespread criticism due to the high price and lack of competitive tendering.

Sri Lankan finance minister Basil Rajapaksa’s visit to clinch a big-ticket loan from India has been postponed. Is this go-slow a deliberate strategy to...