Adani Power has taken the decision to connect its Adani Godda power plant in Jharkhand to the Indian grid. This decision was taken amidst the political turmoil occurring in Bangladesh which has caused a disruption in the power supply from the Godda power plant.
Adani’s Decision To Supply Power In India
Following a recent shift of political power and uncertainty in Bangladesh, the Adani Group has made elaborate plans to connect its Adani Godda coal-based power plant to the Indian grid. With this decision, the Adani Group will be able to ensure that the operations at the Godda power plant get carried out smoothly. India’s enhanced power demands will also be met. Currently, the Adani Group supplies electricity to Bangladesh from this plant. The plant began supplying power to Bangladesh in June 2023. It supplies 7 to 10% of Bangladesh’s total electricity.
Adani Godda Power Plant
The Godda power plant is one of the most striking projects for the Adani Group. It is also the first transnational project to have been taken up by the Adani Group. The plant has two different units each having a capacity of 800 MW. The ultra-supercritical thermal power plant received the commercial operations date for its second unit on 26th June 2023. The first unit also received commercial operations date on 6th April. The power supply from this plant has helped strengthen energy security in Bangladesh. The overall cost of electricity was also reduced significantly.
The Adani Group had signed a PPA with the Bangladesh Power Development Board (BPDB) to supply electricity from the Adani Godda power plant to Bangladesh for a period of 25 years. However, due to the recent political distress, there has been a disruption in the power supply. Bangladesh also has unpaid dues worth 800 million USD which has made it difficult for the Adani Group to continue to supply power in an indisrupted manner to Bangladesh. The Adani Group is constantly in touch with the Bangladesh government for the payment of dues so that plant operations can be carried out smoothly.
The Recent Change In Scenario
As per the latest report, the interim government in Bangladesh has hinted to Adani Power that it would review the power purchase agreement which was signed in 2017. The power plant has already received approval for connection to the Indian grid via a substation in Lakhisarai, Bihar. However, it would require the Adani Group to build a 130 km long transmission line to connect with the Lakhisarai substation. This can take a considerable amount of time and money.
Adani Power’s request for a faster connection via the Banka power substation which is just 30km away was declined by the Central Transmission Utility of India Limited because of various technical limitations. After Muhammad Yunus was appointed as the chief advisor of Bangladesh, the centre recommended connectivity for the Godda power plant to the Indian grid.
Just a few days ago, Adani Power informed the power ministry about the various geopolitical issues that are currently existing in Bangladesh. They have also suggested that supplying power from the Godda power plant to the Indian grid would be a better option.
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The Amendment Made To The Power Law
The power ministry has recently amended the guidelines for the import and export of electricity. As per the recent guidelines, the domestic power plants that have been exclusively supplying electricity to the neighbouring countries such as the Adani Godda power plant also have the right to sell electricity within India. Additionally, the ministry instructed regulatory bodies to develop standardised procedures for connecting this plant to the domestic grid.
So, as per these recent guidelines, the Adani Group has the authority to supply power to the Indian grid. This will ensure that the power demands in the country are met. The Adani Group’s business operations can also be carried out smoothly. The business group will also be able to earn a consistent stream of revenue from its power plant.
Conclusion
The Adani Group’s latest decision to supply electricity to India from the Godda power plant will allow the global conglomerate to maintain business continuity. India’s enhanced energy demands will be met. The Adani Group will also be able to acquire greater control over the country’s power sector.