Muhammad Yunus-led Bangladesh government lands another shocker for Gautam Adani, now accuses Adani Power of…

Bangladesh’s interim government has accused energy supplier Adani Power of violating a multi-billion-dollar energy agreement by failing to disclose tax benefits granted to a coal-fired power plant central to the deal received from New Delhi, according to documents seen by Reuters.

The billionaire Gautam Adani's Indian company inked a deal with Bangladesh in 2017 to supply electricity from its coal-fired facility in eastern India. According to Bangladesh power agency documents and correspondence between the two parties examined by Reuters, as well as interviews with six Bangladesh officials, Dhaka has stated that it hopes to renegotiate the deal, which was awarded by then-Prime Minister Sheikh Hasina without a tender process and costs Bangladesh significantly more than its previous coal power deals.

According to a Reuters article, the terms of the agreement have been expensive for Dhaka in comparison to other coal-based power agreements, according to records from Bangladesh's power agency. The government of Bangladesh, led by Nobel laureate Muhammad Yunus, now plans to review the agreement due to payment conflicts and transparency concerns.

Since Adani Power started providing electricity in 2023, Bangladesh has reportedly fallen behind on payments and owes several hundred million dollars. The precise amount of the overdue bill is disputed by both sides.

The main point of disagreement is that Adani Power neglected to notify Bangladesh of the tax concessions given to its Godda facility, which functions in accordance with India's special economic zone regulations. Adani Power was required to swiftly notify Bangladesh of any changes in the plant's tax status and pass on the advantages of any tax exemptions, as per the terms of the original agreement and an implementation addendum agreed in November 2017.