Adani Power (APL) on Friday said the Bangladesh Power Development Board (BPDB) has requested the company to consider offering a discount on variable energy costs temporarily on account of high coal prices.

The company, part of the Adani Group, said the proposal by the Bangladesh government’s power purchaser is under consideration. Adani Power’s subsidiary signed a long-term power purchase agreement (PPA) for a net capacity of 1,496 megawatts (MW) with BPDB for 25 years in 2018.

“We confirm that there is no revision requested by the BPDB on the PPA for supplying power,” a spokesperson for Adani Power told businessline when asked about reports that the BPDB has sought a revision in the PPA.

“However, 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,” the spokesperson added.

The power supply under the PPA will be made from the upcoming 1,600 MW (2X800 MW) ultra supercritical, coal-based thermal power plant at Godda (Jharkhand).

BPDB’s objections

Sources said that BPDB had raised objections over the coal price of $400 per tonne quoted in the PPA as “excessive” and had written to Adani Power that the price should be around $250 per tonne.

In December 2022, a delegation of senior officials from Bangladesh visited the Adani plant in Jharkhand. The first tranche of about 750 MW of power will be exported to the country beginning March this year, they added.

The BSE on Friday also sought an explanation from Adani Power on reports from Bangladesh seeking a review of the Power Purchase Agreement (PPA). The company’s response is awaited.

The plant at Godda is being set up by an APL subsidiary, Adani Power (Jharkhand), and is nearing completion. The first unit (800 MW) has been synchronised with the Bangladesh power grid.

Unit-1 is available for generation at full capacity and will generate power based on advice from Bangladesh authorities. Meanwhile, the hydro test of Unit-2’s boiler has been completed. The preparation for steam blowing and synchronisation is in progress (as of December 2022).

Overall, APL has a power generation capacity of 12,450 MW from thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh, as well as a 40 MW solar power project in Gujarat.