Adani Power announced Friday that it will continue supplying electricity to Bangladesh from its 1,600 MW Jharkhand plant, which was established specifically to export its entire output to the neighbouring country.
“We have been providing uninterrupted power to Bangladesh from our Godda plant. We understand the importance of reliable power supply to Bangladesh and are committed to fulfilling contractual obligations as per BPDB’s demand schedule and provisions of PPA,” Adani Power said in a statement.
Earlier this month, the Indian power ministry amended its guidelines for power imports and exports. The new rules allow for power generated at export-oriented plants to be sold domestically if the plant is unable to meet its export commitments or if there are defaults under the power purchase agreement (PPA). This includes the possibility of connecting such plants to the Indian grid.
The government’s decision to amend the guidelines comes amid a recent political crisis in Bangladesh and as India strives to meet its growing power demand.
In 2018, the Narendra Modi government established guidelines for power generators dedicated solely to supplying electricity to neighbouring countries. Adani Power’s 1,600-megawatt plant in Godda district, Jharkhand, is currently the only facility with a contractual obligation to deliver all of its generated electricity to Bangladesh.
The Adani Group firm sells power to Bangladesh under an agreement signed in 2017 during the tenure of Sheikh Hasina’s Awami League government in Dhaka. The memorandum of understanding between Adani Group and the Bangladeshi government was finalised in August 2015, shortly after Prime Minister Narendra Modi’s visit to Bangladesh.