Adani Power Faces Scrutiny as Bangladesh Reviews Power Deal Amid Corruption Allegations

Adani Power’s 1,600 MW Godda plant in Jharkhand is at the center of a growing controversy after Bangladesh’s interim government warned it could cancel its 25-year power supply agreement if corruption or irregularities are confirmed. The plant currently supplies nearly 10% of Bangladesh’s electricity, but the deal—signed in 2017 under the previous Sheikh Hasina-led government—is now under review by a national panel led by retired judge Moinul Islam Chowdhury. The review committee has alleged "massive corruption, collusion, fraud, and governance failure" in several power contracts, including those with Adani. While no formal charges have been filed, the threat of cancellation has raised political and legal tensions. Adani, which has not publicly responded to the allegations, has initiated international arbitration over payment delays from Bangladesh. The company claims disputes over cost calculations, while Dhaka cites high tariffs—paying 14.87 taka/unit for Adani’s power versus an average 9.57 taka to other Indian suppliers. Legal experts warn that unilateral cancellation could expose Bangladesh to up to $5 billion in international arbitration claims, making any action legally complex. Meanwhile, Adani’s outstanding dues have dropped to 15 days’ worth of payments, down from nearly $2 billion earlier in 2025, suggesting some progress in resolution talks. As both sides navigate arbitration and scrutiny, the outcome will impact energy ties between India and Bangladesh—and test the resilience of cross-border infrastructure deals amid shifting political winds.