Adani Power Refuses to Reinstate Offer to Bangladesh, Dismisses Discount Request
In a recent development, India-based Adani Power, one of the largest private power companies in the country, has decided to withdraw its previous offer to Bangladesh to develop a 1,292 MW power plant in the country. Despite the significant interest shown by the Bangladeshi government in the project, Adani Power has chosen to reject the request to reinstate the offer, citing reasons of market conditions and financial viability.
The announcement comes after a meeting between Adani Power’s officials and the Bangladeshi government, where the company’s management expressed concerns over the country’s energy sector’s financial viability and the returns on investment. "We appreciate the interest shown by the Bangladeshi government, but we cannot proceed with an offer that does not make business sense for us," said a senior official from Adani Power.
Reportedly, Adani Power had initially quoted a capacity tariff of $8.5 cents per kilowatt-hour (kWh) for the project, which was deemed too high by the Bangladesh government. The government had requested Adani Power to revise its offer, but the company refused, citing its concerns over the project’s financial viability. Adani Power had also requested a discount on the project price, which was also denied by the government, leading to the withdrawal of the offer.
The decision has dealt a significant blow to Bangladesh’s plans to address its chronic power crisis. The country is facing a severe power shortage, with frequent blackouts and power outages becoming a common occurrence. The government had been looking to foreign investors, including Indian companies, to develop new power projects and meet the growing energy demand.
The development is seen as a setback for Bangladesh, which is struggling to maintain power generation and transmission infrastructure to meet the growing demand. The country’s energy sector is plagued by inefficiencies, which has led to prolonged power outages and increased energy losses. The government has been trying to address these issues through the development of new power projects, but the setback from Adani Power adds to its challenges.
In the wake of the development, industry experts have expressed concerns over the country’s ability to meet its energy needs, particularly in the face of growing demands. "Bangladesh needs a robust and efficient energy policy to address its power crisis," said Dr. SM Shamsul Alam, an energy expert. "The government needs to review its energy strategy and attract foreign investment to develop new power projects that are financially viable and serve the interest of the nation."
In the meantime, Adani Power has decided to focus on its existing projects in India and other foreign markets. The company has several power projects under development in India, including the 4,000 MW Kusmadi project in Rajasthan, which is set to be completed by 2025.
The decision is seen as a significant blow to Bangladesh’s energy sector, but experts believe that the country needs to rethink its approach to attract foreign investment and develop its energy infrastructure. With Adani Power’s withdrawal from the project, Bangladesh will need to focus on finding alternative solutions to address its power crisis and meet the growing energy demands of its people.
