Bangladesh has been paying an additional 4–5 US cents per kilowatt-hour for electricity supplied by India’s Adani Power, costing the country an estimated $400 million–$500 million a year under what a government-appointed review committee has described as an “unfair” power purchase agreement (PPA).
According to the committee, the excess payments could amount to nearly $10bn over the 25-year term of the contract for the 1,496-megawatt coal-fired plant built by Adani in Godda, in India’s Jharkhand state.
Presenting its final report at a press briefing at Bidyut Bhaban in Dhaka on Sunday, committee members said they had uncovered evidence that could allow the government to cancel the agreement and seek compensation.
“We have found substantial documentary evidence on the basis of which the government can lawfully cancel the PPA with Adani,” members of the committee said.
The panel said its findings were based on contractual records, transaction timelines and foreign travel documents of officials involved in approving the deal. It also cited whistleblower testimony alleging that the agreement was signed under direct instructions from the office of then prime minister Sheikh Hasina.
Committee members said they had not identified any direct bank transfers linked to the deal into Sheikh Hasina’s personal accounts, but argued that the available evidence raised serious concerns about the integrity of the contracting process.
According to the report, when electricity imported from India’s grid was priced at 4.46 US cents per kilowatt-hour, the tariff approved for Adani Power was set at 8.61 cents, rising to 14.87 cents by 2025.
The increase was attributed to what the committee described as an unusual tariff indexation formula embedded in the contract.
The panel said Adani’s tariff was benchmarked against SS Power, owned by the S Alam Group—an agreement it described as controversial. After adding the cost of constructing transmission lines to Bangladesh and incorporating Indian taxes, Adani’s final tariff exceeded even that benchmark.
The report noted that no explanation appears on record as to why coal-fired power prices in India or other countries were not used as comparative benchmarks.
As a result, Bangladesh is paying at least 40–50% more per unit for electricity supplied by Adani than comparable alternatives, translating into annual excess costs of $400million–$500million, the committee said.
The committee was formed by the interim administration following last year’s student-led mass uprising that led to the collapse of the previous government. Its findings are part of a broader review of power sector contracts signed under emergency legislation.
Members of the panel alleged that bribes amounting to several million US dollars were paid to secure approval for the Adani agreement and that senior government officials were involved in the decision-making process.
The committee said it had issued an early call for whistleblowers and subsequently received a large volume of documentary material from insider sources abroad.
According to the panel, the power division has engaged a legal team comprising internationally recognised UK-based King’s Counsel specialists in corruption litigation, alongside Bangladeshi lawyers, to verify and assess the evidence. Relevant material has also been shared with the Anti-Corruption Commission.
London-based legal experts involved in the review reportedly described the quality of the evidence as exceptional, noting that such comprehensive documentation is rare in international corruption cases.
The committee said the government should formally notify Adani of the allegations and seek its response before deciding whether to initiate contract-related arbitration proceedings in Singapore, warning that delays could weaken Bangladesh’s legal position on procedural grounds.
The panel warned that cancelling or legally challenging major contracts could result in short-term electricity shortages, including severe load-shedding, should Adani suspend supplies. It urged public support for any legal action, arguing that temporary hardship would be necessary to secure long-term benefits.
Losses at the state-run Bangladesh Power Development Board (BPDB) have risen sharply, reaching around Tk 500 billion in 2025, compared with about Tk 55bn in 2009, a surge the committee attributed to systemic irregularities in power sector contracting.
The Adani agreement has become the most prominent symbol of alleged corruption, the report said. Although the Godda plant was built using locally mined coal, restrictions on exporting electricity generated from domestic coal meant that fuel is imported from Australia, shipped by sea and transported across India by rail—costs fully borne by Bangladeshi consumers.
Bangladesh is also paying India’s transmission charges and taxes levied on Adani, which the committee described as “irrational and unjustifiable”.
Despite a fourfold increase in installed generation capacity over the past 14 years, payments to private power producers have risen eleven fold, the report said. Capacity payments—fees paid even when plants are idle—have increased twenty fold, costing BPDB up to $1.5bn a year. Around 9,500 megawatts of capacity remain unused because of fuel shortages and infrastructure constraints.
The committee recommended the cancellation of contracts where corruption is proven, the renegotiation of high-cost PPAs, mandatory competitive bidding for future projects, and the creation of an independent energy regulator to strengthen transparency.
“The corruption was massive and wholly unacceptable,” said the committee’s chair, Moinul Islam Chowdhury, a retired High Court judge.
The panel reviewed power sector deals approved under the now-defunct Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, which allowed contracts to be awarded without competitive bidding and granted legal indemnity to officials involved.
Other members of the committee include Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office, Ali Ashfaq, a fellow chartered accountant, and Prof Moshtaq Hossain Khan of the University of London.
The five-member committee was formed on 5 September last year and examined contracts signed between 2008 and 2024 to assess whether Bangladesh’s interests had been adequately protected.