The panel concluded that electricity imported from Adani’s coal-fired Godda plant in India is being supplied at rates substantially higher than prevailing market prices. According to the committee, the pricing structure places an excessive financial burden on Bangladesh’s power sector.

The report stated that power from the Godda plant was priced at nearly 40% above its closest private-sector competitor. It also recorded the steepest cost escalation among all electricity import arrangements Bangladesh currently maintains with India.

Investigators attributed the price divergence to specific contractual choices made during the agreement process. They added that serious anomalies were identified in the procedures through which the contract was awarded.

One of the most contentious findings relates to the treatment of corporate taxes. The committee said Adani billed Indian corporate taxes directly to Bangladesh, a practice it described as inconsistent with standard international norms.

Typically, independent power producers are expected to bear corporate taxes in their home jurisdictions. The report noted that the Adani agreement deviated from this practice by embedding Indian tax components into the tariff charged to Bangladesh.

The panel also highlighted concerns over fuel costs, stating that coal used by the Godda plant was excessively priced. It described the deal as the most significant statistical outlier within Bangladesh’s portfolio of cross-border electricity procurement.

According to the committee’s estimates, the price being paid for electricity under the contract is roughly 50% higher than what would be considered reasonable. This has raised broader concerns about fiscal sustainability and long-term energy planning.

The report has not yet been officially made public, but its findings are already prompting calls for action. The committee recommended a comprehensive review of electricity contracts to identify scope for renegotiation of the most fiscally damaging provisions.

Adani Power responded by saying it had not been consulted during the review process and had not been provided a copy of the report. The company said it was therefore unable to comment on the panel’s conclusions.

The company added that it continues to supply electricity to Bangladesh despite being owed substantial payment dues. It noted that other power producers have reduced or halted supplies due to delayed payments, affecting sector stability.

Adani Power urged the Bangladesh government to clear outstanding dues at the earliest. It warned that continued payment delays could impact its operations and the reliability of cross-border power supply.

The Godda plant supplies more than 10% of Bangladesh’s electricity imports, making it a critical component of the country’s energy mix. Any renegotiation or disruption could therefore have significant implications for power availability.

Energy analysts say the findings may prompt Bangladesh to reassess how it structures future power import agreements. Greater transparency and competitive bidding are likely to be emphasized to avoid similar issues.

The report comes at a time when Bangladesh is grappling with rising energy costs and fiscal pressures. Managing long-term power contracts has become increasingly important as demand continues to grow.

While no immediate decision has been announced, the panel’s findings are expected to influence policy discussions in the coming months. The outcome could reshape Bangladesh’s approach to cross-border electricity procurement.

The decision reflects the company’s commitment to transparency, mutual cooperation, and maintaining strong energy relations between the two neighboring nations.

The company clarified that the move toward arbitration aims to ensure a fair and efficient resolution process that benefits both sides.

Adani Power emphasized that the disagreements are primarily related to technical aspects of cost calculation and billing under the existing power purchase agreement (PPA), which was signed in 2017.

In a statement, the company expressed confidence that the process would lead to an amicable and mutually beneficial solution.

Both Adani Power and the Bangladesh authorities have shown willingness to engage constructively and resolve the matter through dialogue and established legal frameworks.

Adani Power operates the 1,600-megawatt Godda power plant in eastern India, a major project that supplies nearly one-tenth of Bangladesh’s electricity needs.

Since the plant became operational, it has significantly strengthened Bangladesh’s energy security, providing a stable and uninterrupted power supply that supports the country’s growing industrial and residential demand.

The plant’s advanced infrastructure, efficient operations, and commitment to sustainable power generation have been instrumental in deepening energy cooperation between India and Bangladesh.

Adani Power’s efforts align with India’s broader regional goal of fostering cross-border energy partnerships that drive shared economic growth and stability.

The company recently reported that Bangladesh’s outstanding payments have been reduced to the equivalent of just 15 days’ worth of tariff payments, compared to nearly $2 billion earlier this year.

This substantial progress underscores the positive momentum between the two sides and the shared goal of resolving all outstanding issues swiftly.

Adani Power reaffirmed its commitment to the terms of the power purchase agreement and its dedication to providing high-quality, reliable, and cost-effective electricity.

The company stated that it remains focused on supporting Bangladesh’s energy transition and ensuring long-term sustainability in the power sector.

Industry analysts have viewed the arbitration move as a responsible step that promotes confidence in international business practices.

It also demonstrates Adani Power’s adherence to contractual integrity and its willingness to resolve issues through lawful and transparent channels.

The ongoing dialogue between India and Bangladesh on energy cooperation continues to evolve positively. Both nations recognize the importance of regional energy interdependence, not only for economic growth but also for strengthening diplomatic and strategic ties.

Adani Power’s leadership in the energy sector has helped expand India’s role as a reliable electricity exporter to neighboring countries. Its projects in Bangladesh stand as a model for cross-border energy collaboration in South Asia.

Looking ahead, the company remains optimistic about reaching a swift resolution that reinforces mutual trust and operational stability.

The arbitration process, once completed, is expected to further enhance long-term cooperation and efficiency in energy trade between the two nations.

With continued focus on innovation, transparency, and collaboration, Adani Power remains dedicated to contributing to sustainable energy growth across South Asia—powering progress, one partnership at a time.