India’s Adani Group has said that the recent amendment to India's Power Export Guidelines will not affect the existing Power Purchase Agreement (PPA) between Adani Power and Bangladesh Power Development Board (BPDB).
“The amendment to India's Power Export Guidelines is just an industry enabling universal provision for the exporting power stations in India to establish connection with the Indian grid. This does not affect the existing Power Purchase Agreement (PPA) between Adani Power and the BPDB”, it said in a statement on Wednesday.
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“We have been providing uninterrupted power to Bangladesh from our Godda plant. Adani Power is committed to fulfil contractual obligations as per BPDB’s demand schedule and provisions of PPA and would look forward to continuing reciprocal fulfilment by BPDB”, it added.
The statement from the Indian business group came against the backdrop of a media report that the Indian government amended the existing rules to allow the Adani Power to sell to the local market alongside its export to Bangladesh.
Earlier, Adani Power was bound to export its electricity to Bangladesh under Indian export law. It is believed that such an amendment to the Indian export law was made in order to help the company hedge against political risks in Bangladesh.
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Currently only one plant in India—Adani Power's 1,600 megawatt (MW) Godda plant in eastern Jharkhand state—is under contract to export 100% of its power to a neighbouring Bangladesh.