International Desk:
The interim government of Bangladesh has accused power supplier Adani Power of violating a multi-billion dollar contract by withholding tax benefits.
In 2017, Indian billionaire Gautam Adani’s company signed a deal to supply power to Bangladesh. Dhaka is now hoping to renegotiate the deal.
Bangladesh’s then Prime Minister Sheikh Hasina signed a deal to import power from Adani without any kind of tender process. The cost is also much higher than any other coal-based power deal.
Dhaka has been behind in paying Adani Power since supplies began in July 2023. Adani Power is still owed millions of dollars by Bangladesh in exchange for supplies.
Bangladesh’s energy adviser Muhammad Fawzul Kabir Khan told Reuters that there is now enough domestic capacity without Adani’s supply.
The deal came with an additional implementing agreement, which addressed the transfer of tax benefits, Reuters reported. Bangladesh now plans to re-launch the 25-year agreement.
Source: Reuters
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