Energy

Power deal signed with Adani should be renegotiated: expert

Power supply from Adani plant resumes
Photo: Asifur Rahman/Star/File

The deal with India's Adani Power should be renegotiated as the cost of power from the company is much higher than that of domestic power plants, said energy expert Prof M Tamim, a member of the White Paper Committee on Economy today.

He, however, said the power import from India's other plants is very beneficial for Bangladesh as those cost less than the domestic production.

"Especially, the deal [with Adani Power] to use coal must be renegotiated," he said at a seminar organised by Dhaka Chamber of Commerce and Industry at its office today.

Prof M Tamim, also a former adviser to a caretaker government, presented a comparative analysis of fuel-wise power generation cost where he mentioned that during the 2023-24 fiscal year, the Adani plant cost Tk 14.83 per kilowatt-hour (kWh) while the locally installed coal-fired power plants cost Tk 12.46 per kWh.

However, power imports from other Indian plants cost Tk 8.74 per kWh, lower than the country's average generation cost of Tk 11.02 per kWh, he said.

"Earlier a supplementary deal was signed saying that Adani would keep coal price lower than Payra and Rampal, which has expired and the cost has increased," he added.

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Power deal signed with Adani should be renegotiated: expert

Power supply from Adani plant resumes
Photo: Asifur Rahman/Star/File

The deal with India's Adani Power should be renegotiated as the cost of power from the company is much higher than that of domestic power plants, said energy expert Prof M Tamim, a member of the White Paper Committee on Economy today.

He, however, said the power import from India's other plants is very beneficial for Bangladesh as those cost less than the domestic production.

"Especially, the deal [with Adani Power] to use coal must be renegotiated," he said at a seminar organised by Dhaka Chamber of Commerce and Industry at its office today.

Prof M Tamim, also a former adviser to a caretaker government, presented a comparative analysis of fuel-wise power generation cost where he mentioned that during the 2023-24 fiscal year, the Adani plant cost Tk 14.83 per kilowatt-hour (kWh) while the locally installed coal-fired power plants cost Tk 12.46 per kWh.

However, power imports from other Indian plants cost Tk 8.74 per kWh, lower than the country's average generation cost of Tk 11.02 per kWh, he said.

"Earlier a supplementary deal was signed saying that Adani would keep coal price lower than Payra and Rampal, which has expired and the cost has increased," he added.

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