When Did India’s First Transnational Power Project Start?
Start Date: November 2017.
Adani Power’s Godda power plant in Jharkhand is India’s first power project that exports all its generated electricity to another country, specifically Bangladesh.
Capacity: The plant has a net capacity of 1,496 megawatts.
Why Did Bangladesh Request a Revision of the Power Purchase Agreement?
Bangladesh Power Development Board (BPDB) deemed the coal price of $400/MT excessive, suggesting it should be below $250/MT based on their other sources.
BPDB also raised concerns about high capacity and maintenance charges, which they found to be above industry standards.
The high costs were seen as adding significant financial pressure on Bangladesh's power sector, exacerbating their existing economic challenges
What Does the Latest Amendment Mandate?
The amendment allows Indian power exporters to redirect electricity to the Indian grid if there are delays in payments from foreign buyers like Bangladesh.
This change is intended to protect against political and economic instability in partner countries, ensuring a more stable revenue stream for exporters.
Enhances flexibility for exporters by reducing dependency on potentially unstable foreign markets, providing a buffer against payment delays and economic fluctuations.
Impact on Adani Power: The amendment does not affect existing contracts but provides a safeguard for future transactions, allowing Adani Power to maintain operational stability.
COMMENTS