Will scrap Adani power deal if graft is proved: Bangladesh

DHAKA: Bangladesh will not hesitate to cancel a 2017 power contract with India's Adani group if any irregularities or corruption are proven, said the Muhammad Yunus-led interim government, referring to an interim report that claimed "massive governance failure" and "massive corruption" across the energy sector.

The report was submitted by the national review committee, established to review power sector contracts signed during the Sheikh Hasina governmet. Its chief, retired HC judge Moinul Islam Chowdhury, said Sunday "we found massive corruption, collusion, fraud, irregularities and illegalities".

While contracts affirm no corruption has taken place, cancellation remains possible if evidence proves otherwise, said power, energy and mineral resources adviser Muhammad Fouzul Kabir Khan at a press conference Sunday, following a meeting with the panel. "Verbal assurances won't be accepted by courts; there must be proper justification," he added.

The 25-year deal between Adani Power and Bangladesh Power Development Board - which obliges Bangladesh to buy 100% of electricity generated by Adani's 1,600 MW coal-fired power plant in Jharkhand - had come in for scrutiny after Hasina govt's ouster. The plant was built to supply power exclusively to Bangladesh via a cross-border transmission line.

Committee member Mushtaq Husain Khan said because it is a sovereign contract, it can't be terminated arbitrarily. Cancelling such agreements could expose Bangladesh to substantial financial penalties from international arbitration courts, he said.