Adani Group will supply electricity to Bangladesh at low cost, know what was the deal in 2017

Adani Group Power Supply to Bangladesh: Billionaire Gautam Adani’s company has promised to supply electricity to Bangladesh at a low cost. The report claimed that Adani Power Limited has promised to supply electricity to Bangladesh at a lower cost, commensurate with the cost of production in the country’s existing coal-fired plants.

According to an Adani Group official, the Adani Group will import coal from India to Bangladesh at the same price at which plants operating in Bangladesh supply it. According to the mass-circulation Prothom Alo newspaper, the Indian company has agreed to reduce the price of its coal imports. By doing this, the coal supplied by Adani Group will be equal to the cost of the company’s joint plant of China and India operated in Bangladesh.

There was a demand for amendment in the agreement of Adani Group

The Power Development Board of Bangladesh, a government body from Adani Group, this month demanded amendment in the power agreement signed in 2017, as the cost of electricity generated from this coal was higher than others. In such a situation, the board had demanded Adani Group to reduce the price. However, a PDB official said that Adani Group has sent a five-member team regarding the supply of coal and efforts are being made to resolve the dispute over high cost coal.

Demand to buy coal at what price

It has been told in the report that the Bangladesh Board said that the price of this coal of Adani Group is high (USD 400/MT), which should be less than USD 250/MT. At this price, coal is being purchased from Bangladesh’s plant. This statement has been given on the condition of anonymity on behalf of an officer.

The American organization told the deal was expensive

During 2018, the US-based Institute for Energy Economics and Financial Analysis (IEEFA) described the coal deal between Adani Pawar and Bangladesh as expensive and risky. Bangladesh currently imports 1,160MW of electricity from India. At the same time, the supply of coal for 25 years from Adani Power will start from this year.

read this also

Lending Rates: Many banks including SBI, Bank of Baroda gave shock to customers, increased loan interest rates