The committee reviewing Bangladesh’s power purchase agreement with India’s Adani Power has said that the evidence of irregularities and corruption found in the deal is sufficient to justify its cancellation. The committee has also recommended taking the matter to the Singapore International Arbitration Centre to annul the contract. However, as the report has been submitted at a time when the tenure of the interim government is nearing its end, the committee has advised that the next government take the initiative to cancel the contract, citing a lack of time for decisive action by the current administration.
Committee head and retired High Court Division judge Moinul Islam Chowdhury said, “The ball is now in the power division’s court. They have to take the decision regarding the case. Given the limited time left for the current government, we would prefer the next government to take appropriate steps.” The committee also warned that any delay could weaken Bangladesh’s position in an international legal forum.
The review committee held a press conference yesterday (January 25) at the Biddut Bhaban, where its members presented findings on the Adani contract as well as the overall state of the country’s power sector. Earlier, on January 20, the committee submitted its final report to the Ministry of Power, Energy and Mineral Resources.
The five-member committee was formed on September 5, 2024, after the interim government assumed office, to review contracts signed under the Quick Enhancement of Power and Energy Supply (Special Provisions) Act, 2010. The committee analysed various data and documents for more than one and a half years as part of its review process.
The power purchase agreement with Adani Power has been controversial from the outset, particularly over allegations of one-sided terms, high-cost power procurement, capacity charges, customs evasion, and other inconsistencies. After the interim government took office, a major crisis emerged over outstanding dues to Adani, prompting strong demands from various organisations for the contract’s cancellation. In response, the government formed a five-member committee to scrutinise the Adani deal and other contracts signed under the special law.
There are allegations that the government increased electricity purchases from the Indian company under the Adani contract, while also clearing most of the arrears left behind by the ousted Awami League government. The payment of large outstanding dues amid serious disputes between the Bangladesh Power Development Board (BPDB) and Adani over coal prices also drew sharp criticism. Issues such as alleged revenue evasion by Adani and corruption and irregularities in the contract have since come under scrutiny.
At yesterday’s press conference, committee members said they had found evidence of illegal transactions amounting to several million dollars involving seven to eight individuals linked to the Adani deal. The information has been forwarded to the Anti-Corruption Commission (ACC) for further investigation. Adani Power, however, said it had not received any official communication regarding the review committee’s report or related matters. The company issued a media statement shortly after the press conference at the Power Bhaban.
Commenting on the findings, committee member Professor Mushtaq Hussain Khan of the Faculty of Law and Social Sciences at the University of London said that the types of corruption found in the Adani contract are rare in international cases. “Preliminary information suggests that several million dollars were illegally transacted in exchange for the contract,” he said, adding that documentary evidence, including travel records of the individuals concerned, has been handed over to the ACC. He noted, however, that no evidence of transactions involving the personal accounts of former prime minister Sheikh Hasina had been found.
He said, “Compared with electricity purchased from other sources at the time the contract was signed, the government is paying 4–5 cents more per unit. Even when compared with electricity imported from India, the price is significantly higher. The contract with Adani was signed at 8.61 cents per unit, but due to various contractual clauses, the payment rose to 14.87 cents per unit in 2025. As a result, an additional $400–500 million has to be paid to Adani every year. If the contract continues, this burden will persist for 25 years.”
Professor Mushtak Hussain Khan further said, “There is widespread public interest in the Adani issue. Our committee was asked to submit a report on the contract, and we’ve done so. We’ve also submitted a report to the court. Bangladesh is paying Adani nearly $1 billion every year. Over the next 25 years, this will amount to $25 billion. This is a sovereign guarantee. Under this contract, we’re paying around 40 percent more. Over the next 25 years, the excess payment will total about $10 billion.”
He added, “If the matter goes to court, Adani may suspend power supply, which could lead to load-shedding. The people of the country will have to decide whether they are willing to tolerate load-shedding, if necessary, rather than accept this corruption.”
Another committee member, former World Bank lead economist at its Dhaka office Dr Zahid Hussain, highlighted how the country’s power sector has been burdened with liabilities and its capacity rendered ineffective. He said, “Between fiscal years 2011 and 2024, payments to independent power producers (IPPs) increased 11-fold, while power generation rose only fourfold. The BPDB is incurring losses of more than BDT 500 billion annually, and its outstanding liabilities could exceed BDT 550 billion in the 2025–26 fiscal year. Despite surplus generation capacity, system utilisation remains only 40–50 percent. The committee estimates the annual financial cost of excess or idle capacity at around $900 million to $1.5 billion, pushing BPDB towards insolvency.”
He said, “To address the deficit, wholesale electricity tariffs would have to be increased by 86 percent. That would make electricity prices higher than in India, China, Vietnam, and Sri Lanka, leaving Bangladesh’s industries unable to compete with those countries.”
Others present at the press conference at the Power Bhaban included committee member Professor Abdul Hasib Chowdhury of the Department of Electrical and Electronic Engineering at BUET, former KPMG Bangladesh COO Ali Ashraf, among others.
After assuming office, the interim government repealed the sector-specific special law enacted by the previous government to promote competition in the power sector. It also initiated tariff renegotiations and measures to reduce system losses. As part of reforms, steps were taken to cut BPDB’s losses, increase utilisation of state-owned power plants, and reduce reliance on private-sector power purchases. However, these initiatives failed to ease the sector’s financial pressure. Instead, power purchases from the private sector reached the highest levels.
In the 2024–25 fiscal year, total expenditure on power purchases stood at around BDT 1.21 trillion, of which BDT 720.71 billion was spent on electricity bought from the private sector (IPPs). This was BDT 146.94 billion, higher than the previous fiscal year. In 2023–24, electricity purchases from IPPs amounted to BDT 573.77 billion.