SINGAPORE (Reuters) – Adani Power said on Thursday it would continue to supply electricity to Bangladesh, but a recent change in power export rules would not affect the existing contract.
The change made by the government will facilitate connection to the Indian power grid but will not impose an obligation on India to purchase electricity, Adani Power said in a statement.
“Adani Power is committed to fulfilling the contractual obligations as per the Bangladesh Power Development Board’s demand plan and the terms of the power purchase agreement and would look forward to continued mutual fulfillment,” Adani Power said.
Adani Power’s 1,600 megawatt (MW) Godda power plant in the state of Jharkhand is the only one in India that has a contract to export 100 percent of its electricity to a neighboring country.
The change in the law, which regulates generators that supply electricity “exclusively to a neighboring country,” allows Adani to also supply electricity to the domestic market to hedge against political risks in Bangladesh.
The change came less than a week after long-serving Prime Minister Sheikh Hasina fled Bangladesh amid deadly protests over the government’s quota system, and could benefit future energy projects where all production is tied to export contracts.
(Reporting by Sudarshan Varadhan; Editing by Tom Hogue)
