Adani Power, Bangladesh Seek Amicable Resolution Through Arbitration

Adani Power Ltd has announced that it will enter international arbitration with BPDB to resolve ongoing disagreements related to cost elements under their power purchase agreement. The dispute centers on how certain charges are calculated and billed, prompting both parties to activate the dispute resolution clause in their 2017 contract.

The company clarified that it is receiving regular payments from BPDB, but only to the extent acknowledged by the Bangladeshi authority. Despite the financial disagreements, Adani Power continues to fulfill its supply commitments from its Godda plant in Jharkhand, ensuring uninterrupted electricity delivery to Bangladesh.

Important points:

• Adani Power and BPDB to enter international arbitration over billing disputes
• Disagreements involve cost calculations under the power purchase agreement
• Adani receiving partial payments as acknowledged by BPDB
• Electricity supply from Godda plant continues without disruption
• Both parties aim for a smooth and mutually beneficial resolution

Sources: India Today, Economic Times, Channel News Asia