No change as Adani will supply electricity to Bangladesh from March, says minister

The rate would follow the competitive market, he says

State Minister Nasrul Hamid File Photo

The government will establish power connection with a plant being built by Indian conglomerate Adani Group’s subsidiary in Jharkhand in March as previously projected, State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said.

He on Sunday said Bangladesh would receive electricity at the “rate of the competitive market” and experimental supply would begin on Feb 28.

The connection from Jharkhand will enter Bangladesh through Chapainawabganj and Bogura transmission lines.

Adani Group is facing its worst-ever crisis following accusations of stock manipulation and accounting fraud by US firm Hindenburg Research last month. The group’s market losses swelled to more than $100 billion, sparking worries about their potential systemic impact on Thursday a day after its flagship company abandoned a $2.5 billion stock offering.

Some farmers also legally challenged the construction of Adani transmission lines on farmlands at an Indian court.

Media reports last week said Bangladesh sent a letter to Adani Power Ltd to negotiate a lower import price for coal under the power purchase agreement.

However, Nasrul shrugged off uncertainties surrounding the contract. He reiterated that Bangladesh would start receiving 750 MW in March and another 750 MW in April.

Nasrul had earlier confirmed that the government was going ahead with its plans to adjust gas prices monthly in February.

Responding to a question, he said: “LNG bought from the open market is arriving this month. So the decision to raise gas prices will not be delayed.”