Bangladesh May Cancel Adani Power Contract Amid Corruption Probe

Bangladesh's interim government is conducting a thorough review of power sector contracts signed under the previous administration, with a potential cancellation of the 2017 power supply agreement with India's Adani Power. Energy Affairs Adviser Muhammad Fouzul Kabir Khan indicated that the contract is subject to cancellation if any instances of corruption or irregularities are definitively proven, according to local media reports.

The review is being carried out by a National Review Committee, which has already submitted an interim report alleging "massive governance failure" and "massive corruption" within the energy sector. The committee, headed by retired judge Moinul Islam Chowdhury, is also preparing a separate report specifically on the power purchase deal with Adani Group.

The 2017 contract involves Adani Power's Godda power plant in Jharkhand supplying electricity to Bangladesh for a period of 25 years. Despite recent payments by Bangladesh to clear outstanding dues, the scrutiny highlights ongoing concerns.

Impact This development could significantly impact Adani Group's operations and reputation, potentially affecting its financial standing and future international projects. It could also strain India-Bangladesh economic ties and influence investor confidence in large infrastructure projects between the two nations. Impact Rating: 7/10.

Difficult Terms: Interim government: A temporary government that rules a country until a permanent government can be formed, often after a political change. Irregularities: Actions that are not in line with rules or laws; mistakes or improper procedures. Corruption: Dishonest or fraudulent conduct by those in power, typically involving bribery. Ouster: The removal of someone from a powerful position. Scrutiny: Close and critical examination or inspection. Collusion: Secret cooperation between people or groups for illegal or deceptive purposes. Quick rental deals: Contracts for temporary power generation capacity, often short-term and potentially more expensive. Unilaterally: In a way that involves or concerns only one side or party. Penalties: Punishments or consequences for breaking a law or rule, often financial. Jurist: An expert in law; a legal scholar.