Bangladesh asks Adani for discount in coal electricity deal


NEW DELHI – Bangladeshi authorities are seeking concessions on electricity bought from a power company owned by Gautam Adani, according to a stock exchange filing made public on Tuesday, in the latest sign of growing scrutiny of the Indian billionaire’s dealings. .

In a letter sent to the Securities and Exchange Board of India on February 3 and published by stock exchanges on Tuesday, Adani Power told the Indian regulator that Bangladesh has “requested us to consider concessions” on the lucrative power deal. Doing”, which was signed. 2017 but remained shrouded in secrecy for years.

Under the terms of a confidential, 163-page power purchase agreement obtained and reported by The Washington Post in December, Bangladesh, a poor and heavily indebted country, will receive more electricity from a new coal-fired power plant. Will pay the price. Built by Adani, a long-time ally of Indian Prime Minister Narendra Modi, prices were higher than those paid for comparable power plants.

Political will often favors the coal tycoon and his dirty fossil fuels.

Additionally, unusual conditions include the absence of a coal price cap, meaning Adani – which could potentially source coal from its overseas coal mines through its own shipping network and coal-handling ports for power plants. Will import coal – can charge Bangladesh. Even more expensive, the Post reported.

The power purchase agreement between Adani and Bangladesh was signed after Modi’s 2015 official visit to Bangladesh, where the Indian leader urged his counterpart Sheikh Hasina to ease the entry of Indian businesses into Bangladesh. gave

In recent weeks, Bangladeshi officials have expressed concern about the deal with Adani and expressed hope for renegotiations, according to local media reports. But in its letter to Indian regulators this week, Adani Power said the power purchase agreement was not being renegotiated. Adani spokeswoman Varsha Chenani declined to comment further.

A spokesman for Bangladesh’s Electricity Minister Nasrul Hamid did not immediately respond to a request for comment.

The business empire of Asia’s richest man is under fire after reports of fraud

Adani, which has enjoyed meteoric growth over the years, has come under increasing scrutiny from international business circles as well as in India. In the weeks since US short-selling firm Hindenburg Research published a report alleging widespread fraud on January 24, Adani’s seven publicly traded companies have suffered massive stock losses. – Market capitalization has lost over $100 billion.

Top Adani officials have denied the allegations and said criticism of foreign investors amounts to an attack on India itself.

An investigation by The Post last year found that the Adani power project received massive tax breaks and legislative changes by officials under the Modi government that allowed the billionaire’s firm to 1 More than a billion dollars will be saved.

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