A government-appointed panel in Bangladesh has found that electricity supplied by Adani Power from its coal-fired Godda plant in India is significantly overpriced and awarded through flawed procedures.
The National Review Committee (NRC), in a report dated January 20, said the plant charges nearly 40% more than its closest private-sector competitor and shows the steepest cost escalation among power imports from India.
The committee said the higher pricing was the result of specific contractual choices and identified serious anomalies in how the deal was approved.
It added that the tariff paid by Bangladesh is about 50% higher than it should be, making the Adani contract the most expensive outlier in the country’s cross-border electricity portfolio.
The NRC also said Adani uses excessively priced coal and passes Indian corporate taxes on to Bangladesh, a practice it said deviates from international norms.
Standard practice, the report said, requires power producers to bear their own corporate taxes in their home country rather than transfer them to buyers.
Adani Power said it could not comment on the findings because it had not been consulted or given a copy of the report.
The company said it continues to supply electricity despite large unpaid dues from Bangladesh, while other suppliers have reduced or halted deliveries.
Adani urged the Bangladesh government to clear outstanding payments, saying the delays are affecting its operations.
The NRC recommended reviewing existing electricity contracts and renegotiating provisions it described as fiscally damaging to Bangladesh.