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Bangladesh Signals It May Cancel Adani Power Deal if Corruption Is Proven

The warning follows an interim review that alleged widespread corruption in earlier power contracts.

Overview

  • The National Review Committee submitted an interim report and prepared a separate brief on the 2017 Adani agreement, with a final report due in January 2026.
  • The 25-year contract obliges Bangladesh to purchase 100% of the electricity from Adani’s 1,600 MW Godda coal plant in India.
  • Officials and jurists cautioned that terminating a sovereign cross-border contract could invite international arbitration and multi‑billion‑dollar claims.
  • Adani and Bangladesh have invoked a dispute‑resolution process over billing and payments, and both sides signaled they could proceed to international arbitration if negotiations fail.
  • Bangladesh paid $437 million in June to reduce arrears after earlier shortfalls that saw Adani cut supply, and reporting cited higher per‑unit tariffs for Adani power than for other Indian suppliers last fiscal year.