Adani Power said on Thursday it was committed to supplying electricity to Bangladesh, saying a recent amendment to power export rules does not affect its existing contract. The amendment by the government facilitates connectivity to the Indian grid but does not impose any obligation on India to buy electricity, Adani Power said in a statement.
“Adani Power is committed to fulfil contractual obligations as per Bangladesh Power Development Board’s demand schedule and provisions of the power purchase agreement and would look forward to continuing reciprocal fulfilment,” Adani Power said.
Adani Power’s 1,600 megawatt (MW) Godda plant in Jharkhand state is the only one in India under contract to export 100 per cent of its power to a neighbouring country.
The amendment, which governs generators supplying electricity “exclusively to a neighbouring country”, enables Adani to also supply electricity to the domestic market to hedge against political risks in Bangladesh.
The change came nearly a week after longtime Prime Minister Sheikh Hasina fled Bangladesh amid deadly protests triggered by quotas for government jobs, and could benefit future power projects where all output is locked into export contracts.
Adani Energy
Shares of Adani Energy Solutions Ltd (AESL) at last trading session on Wednesday jumped 3.8 per cent despite the flattish markets, as the Street is expecting strong inflows by the end of August from the inclusion in the MSCI Index—inflows of $250 million according to brokerage houses.
On Tuesday MSCI announced that it has lifted ‘Embargo’ on Adani Group stocks, which means the stock is eligible for inclusion in the MSCI India Index, after removing the group company last year in late January 2023, due to uncertainty over free-float.
Lifting this restriction means that any recent changes in free float plus equity raises are eligible for inclusion. Furthermore, stocks that were excluded can be included again. Earlier in August, Adani group’s power transmission, distribution and smart metering company completed a $1 billion QIP, which has led to an increase in the company’s free float.