Adani Power’s Godda plant in the eastern Indian state of Jharkhand sells its entire output to Bangladesh. | Image: Bloomberg
India has introduced new rules for electricity producers that export their power, allowing them to sell it on the domestic market. The move could benefit Adani Power Ltd.’s plant, which exports electricity to Bangladesh.
Power plants that sell all their power to India’s neighbouring countries would be able to get a connection to the domestic grid in case of a sustained drop in consumption or payment defaults, according to new rules posted on the power ministry’s website.
Adani Power’s Godda plant in India’s eastern Jharkhand state sells all of its output to Bangladesh. The 1.6-gigawatt plant had been experiencing payment arrears, but payments are now being made four to five months late, which is typical in Bangladesh, the company told analysts on an earnings call.
The new rule comes amid political turmoil in Bangladesh that prompted former Prime Minister Sheikh Hasina to flee the conflict-ravaged nation and seek refuge in India. Although a caretaker government has taken power in Dhaka, risks of political uncertainty remain.
First published: August 14, 2024 | 10:46 PM IS
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