Adani plant passed on Indian corp taxes to Bangladesh, electricity charges overpriced, says Bangladeshi panel
Adani’s Godda power plant priced its electricity at a 39.7 per cent premium compared to its closest private-sector competitor, said Bangladesh’s National Review Committee.
- Jan 27, 2026,
- Updated Jan 27, 2026 12:02 PM IST
A recent report from Bangladesh’s National Review Committee (NRC) stated that the Adani Power coal-fired plant in India's Jharkhand state passes on Indian corporate taxes to Bangladesh and charges for electricity at rates significantly above those of comparable suppliers. The committee has called for a review of electricity contracts to identify opportunities for what it described as "renegotiation of the most fiscally damaging provisions”.
According to Reuters, the NRC report stated that the Adani plant, which supplies over 10 per cent of Bangladesh's power needs, uses "excessively priced" coal and includes Indian corporate tax components in the tariffs charged to Bangladesh. The committee found that "the price being paid is roughly 50 per cent higher than what it should be”, and described Adani’s contract as "the most significant statistical outlier" in Bangladesh’s cross-border electricity portfolio.
The NRC identified these cost disparities as an "outcome of specific contractual choices”, noting evidence of serious anomalies in the procedures through which the contract was awarded, the agency report stated.
According to the report, Adani’s Godda power plant priced its electricity at a 39.7 per cent premium compared to its closest private-sector competitor, with the highest rate of cost escalation among all Indian power import arrangements reviewed.
The NRC highlighted the deviation from standard international practice, stating that standard international practice usually requires independent power plants to bear their own corporate taxes in their home jurisdiction. However, the Adani power purchase agreement deviates by including Indian corporate tax components in the tariff charged to Bangladesh, it said.
Adani Power responded that it could not comment on the review as the committee neither consulted the company nor provided it with a copy of the report, said Reuters. The company emphasised that it is continuing to supply electricity to Bangladesh despite "large payment dues”, while other generators have reduced or halted supplies.
"We urge Bangladesh government to liquidate our dues at the earliest as this is impacting our operations," the company said in a statement.
The NRC has recommended a comprehensive review of existing cross-border electricity contracts, focusing on renegotiating the financial terms believed to be most detrimental to Bangladesh’s fiscal interests.
A recent report from Bangladesh’s National Review Committee (NRC) stated that the Adani Power coal-fired plant in India's Jharkhand state passes on Indian corporate taxes to Bangladesh and charges for electricity at rates significantly above those of comparable suppliers. The committee has called for a review of electricity contracts to identify opportunities for what it described as "renegotiation of the most fiscally damaging provisions”.
According to Reuters, the NRC report stated that the Adani plant, which supplies over 10 per cent of Bangladesh's power needs, uses "excessively priced" coal and includes Indian corporate tax components in the tariffs charged to Bangladesh. The committee found that "the price being paid is roughly 50 per cent higher than what it should be”, and described Adani’s contract as "the most significant statistical outlier" in Bangladesh’s cross-border electricity portfolio.
The NRC identified these cost disparities as an "outcome of specific contractual choices”, noting evidence of serious anomalies in the procedures through which the contract was awarded, the agency report stated.
According to the report, Adani’s Godda power plant priced its electricity at a 39.7 per cent premium compared to its closest private-sector competitor, with the highest rate of cost escalation among all Indian power import arrangements reviewed.
The NRC highlighted the deviation from standard international practice, stating that standard international practice usually requires independent power plants to bear their own corporate taxes in their home jurisdiction. However, the Adani power purchase agreement deviates by including Indian corporate tax components in the tariff charged to Bangladesh, it said.
Adani Power responded that it could not comment on the review as the committee neither consulted the company nor provided it with a copy of the report, said Reuters. The company emphasised that it is continuing to supply electricity to Bangladesh despite "large payment dues”, while other generators have reduced or halted supplies.
"We urge Bangladesh government to liquidate our dues at the earliest as this is impacting our operations," the company said in a statement.
The NRC has recommended a comprehensive review of existing cross-border electricity contracts, focusing on renegotiating the financial terms believed to be most detrimental to Bangladesh’s fiscal interests.