A Bangladeshi government investigation has uncovered substantial irregularities in a major cross-border electricity supply agreement with Indian energy giant Adani Group, raising serious concerns about systematic collusion and financial misconduct. The National Review Committee on Power Purchase Agreements revealed on Monday that the state-owned Bangladesh Power Development Board (BPDB) has been paying approximately 50% above market rates for power supplied from Adani’s coal-fired Godda plant in India’s Jharkhand state.
The committee’s report identified what it termed “egregious anomalies” in the contract negotiation process, suggesting deliberate overpricing that generated excessive profits distributed among businesses, politicians, and bureaucrats. According to the findings, Bangladesh is overpaying by 4-5 cents per kilowatt-hour under the 25-year agreement, resulting in annual payments of approximately $1 billion to Adani Power.
The Godda power facility, which commenced operations in 2024 as a $2 billion project including transmission infrastructure, supplies between 7-10% of Bangladesh’s baseload electricity demand, serving a population of 170 million people with 13 GW of power requirements. The committee reported that BPDB incurred losses totaling $4.13 billion during the 2024-25 period directly attributable to the unfavorable contract terms.
In response to the allegations, Adani Power stated that it had not yet received the official report but maintained that its pricing remains highly competitive within the regional energy market. The company emphasized its continued power supply despite accumulating receivables and urged the Bangladeshi government to address outstanding payments that are affecting its operational capabilities.
The investigation specifically targets contracts negotiated during the administration of former Prime Minister Sheikh Hasina, who maintained close ties with India before being ousted in August 2024. The political transition has significantly altered bilateral relations between the neighboring nations and prompted comprehensive reviews of previously established agreements.
The committee has recommended immediate contract cancellations where evidence of corruption exists and called for widespread renegotiation of pricing terms with private power providers to align with market-competitive levels. These developments occur amidst Bangladesh’s preparation for parliamentary elections scheduled for February 12, which will determine new leadership following extended political turmoil.