Adani power agreement under review, minister tells JS

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku said that the power purchase agreement signed in 2017 with Adani Power Limited is currently under review.

He made this remark on Thursday during the question-and-answer session of the Jatiya Sangsad, in response to a written question from Member of Parliament Shahjahan Chowdhury. The parliamentary session was presided over by Speaker Hafiz Uddin Ahmed.

In his reply, Tuku said that during the interim government period, the agreement had already been reviewed by a national committee led by a retired judge of the Supreme Court. “The committee included power and energy experts, legal experts, economists, and chartered accountants. After examining the deal, they found that the previous Awami League government had signed the agreement at abnormally high prices compared to both domestic and international market standards."

He further stated that the government is now considering two options to amend the agreement: resolving the issue through international arbitration, or renegotiating the terms directly with Adani Power.

Responding to another written question from MP Reza Ahmed, the minister said that the country’s current power generation capacity stands at 32,332 megawatts. Based on demand, an average of 14,500 to 15,000 megawatts of electricity is being generated daily.

He added that the total installed capacity—including captive power, imports, renewable energy, and net metering—is 32,332 MW, of which grid-based generation capacity is 28,919 MW.

In response to a written question from Feni-2 MP Zainal Abedin Faruk regarding modernization of power distribution, the minister said there are currently 1,834 substations across the country under various distribution entities. These include 187 under the Bangladesh Power Development Board, 136 under the Bangladesh Rural Electrification Board, 60 under DESCO, 99 under DPDC, 97 under WZPDCL, and 85 under NESCO.

He noted that the government has prioritised improvements in power transmission and distribution systems under a 180-day action plan. ‘As part of modernization efforts, new transmission lines are being constructed, old and dilapidated lines and substations are being upgraded, and underground distribution lines and substations are being installed. Technologies such as SCADA, GIS, and smart grid systems are also being implemented’.

Additionally, a nationwide advanced digital communication network has been developed using optical fiber installed along transmission lines, connecting all power installations to the SCADA system of the National Load Dispatch Center (NLDC), the minister added. 

This plays a vital role in ensuring efficient, cost-effective, and secure operation of the overall power system.

‘Across the country, construction of 139 new substations is underway under six distribution companies’.

‘To enhance distribution capacity, five ongoing projects are being implemented under the Rural Electrification Board, while three more projects are awaiting approval. The five ongoing projects will construct 128 new substations and upgrade 76 existing ones, increasing capacity by 2,543 MVA. The three proposed projects aim to build 226 new substations, adding another 3,712 MVA.’

In total, by 2031, the country’s distribution capacity is expected to increase by 6,255 MVA.