Adani Power commences supply to Bangladesh from Godda plant in Jharkhand

Supply was to start in March. However, Bangladesh Power Development Board had sought relief from rising imported coal prices. Unit will source coal from Adani-owned Carmichael mine in Australia

Adani Power Limited (APL), has started supply of electricity from the Godda power plant in Jharkhand to Bangladesh, the company said in a statement on Sunday.

"APL announces the commissioning of its first 800 Mw ultra-super-critical thermal power generation unit at Godda in the Jharkhand state of India and begins supplying Bangladesh with 748 Mw of power," said the company in its statement.

Godda was to commence power supply this March. However, the key beneficiary of the project, Bangladesh Power Development Board (BPDP) had asked for relief from escalating imported coal prices. Godda power plant will source coal from the Carmichael mine in Australia, owned and operated by Adani Mining.

“The Godda Power Plant is a strategic asset in India and Bangladesh’s long-standing relationship. It will ease the power situation in Bangladesh, making its industries and ecosystem more competitive," said S B Khyalia, CEO, APL.

In November 2017, BPDB signed a long-term Power Purchase Agreement (PPA) with APL’s wholly-owned subsidiary Adani Power Jharkhand Ltd (APJL) to procure 1,496 Mw net capacity power from the 2x800 Mw ultra-supercritical power project at Godda.

APL is expected to commission its second 800 Mw unit soon, the company said.

This February, BPDP sought for “temporary relief” in the cost of coal supplied for the plant, Business Standard reported.

Given the geopolitical tensions impacting global coal prices, the cost of coal from Carmichael has also escalated. Adani Power however said BPDB asked for a discount on coal cost.

“BPDB has written to us to consider discounting the variable energy costs on a temporary basis given the current high thermal-seaborne coal prices, which is under consideration,” said the emailed response to this paper.