Adani Power exploring selling power from Godda to other countries

With power off-take from the Godda plant in Jharkhand being reduced significantly, Adani Power is looking at selling the power produced at the plant to neighbouring countries such as Sri Lanka, but will have to get the consent of the Bangladeshi authorities, an official there saidThe project has been under stress due to political changes in Bangladesh. Although to sustain projects like these, the Indian government has recently allowed to sell power in the domestic market, Adani will need to set up a fresh transmission network to do so. Its current network is just for export to Bangladesh.

While selling power to Sri Lanka may not be an issue as far as Indian regulations are concerned, it may require approval from Bangladesh.

“For Adani’s to sell to Sri Lanka the project that was dedicated to Bangladesh, I believe they will require the consent of Bangladesh Power Development Authority,” Muhammad Fouzul Kabir Khan, the adviser for the Ministry of Power, Energy and Mineral Resources, in the Bangladesh government, told businessline.

It is no secret that the Bangladesh government has defaulted in its payment of dues to the Adani group for the power purchased from the plant and still owes it several hundreds of millions of dollars, though that exact amount is under dispute between the two sides. Following the non-payment, Adani reduced the quantum of power supply from the plant to Bangladesh. Sources said that demand for power from Bangladesh has also fallen further reducing off-take from the plant.

According to sources within the Adani group, it is looking to sell the power produced from the plant domestically as well as to neighbouring countries such as Sri Lanka. It can sell the additional power in the Indian Energy Exchange. Sources associated with the power ministry said that selling power to Sri Lanka from the project may not be an issue under Indian norms, as for exports all is needed for the project to be in a SEZ. The precinct of the Godda power plant was designated a SEZ.

The Godda plant with 2X800 MW capacity was commissioned in June 2023 and under the terms of the PPA signed in 2017 was to supply 1,496 MW net capacity power.

Meanwhile, in Bangladesh the Adani project is under scrutiny. The High Court there had picked 11 projects to be scrutinised which included Adani project. Now, it has directed for detailed investigations of seven projects that includes Adani project.

It has asked the interim government there to hire international law firm for the purpose. Besides, inflated tariff the allegation against Adani is also that it has not shown the tax benefits for the project it has received from the Indian government.