Power dominates Bangladesh’s imports from India

Bangladesh imported electricity worth $1 billion from Adani Power in fiscal year 2023-24, which was 9.3 percent of the country's $11 billion-worth imports from India that year, according to a media report.

That means, Bangladesh's imports of electricity from India have practically doubled in recent years as the country's imports of power amounted to around $498 million just two years back.

Citing data of the Kolkata-based Eastern Regional Power Committee, The Indian Express said Bangladesh imported at least 7,508 million megawatts from Adani's Godda Thermal Power Station between April 2023 and March 2024.

This was 63 percent of the power plant's overall exports of about 11,934 million megawatts that year.

Diesel accounted for the second highest expense for imports from India. Bangladesh purchased $829.59 million worth of the fuel, constituting 7.5 percent of the total imports.

Cotton took third place for imports of $595.81 million, accounting for 5.38 percent of the total.

Power imports from India amounted to $1.075 billion in fiscal 2022-23, or 8.8 percent of Bangladesh's total imports of $12.21 billion from the neighbouring country that year.

The value of cotton imports that year was $495.97 million, or 4 percent, while it was $423.03 million, or 3.46 per cent, for diesel.

In the fiscal year before that, cotton was on top as $1.58 billion worth of the most-exported item in terms of value was imported by Bangladesh.

It was followed by wheat with imports worth $1.18 billion, or 7.36 percent of the total, at the time while power stood at sixth position with $498.25 million, or just 3 percent of the total.

After former Bangladesh prime minister Sheikh Hasina fled to India in the wake of spiralling protests, New Delhi amended its power export rules to de-risk the 1,600-megawatt Godda plant, which is currently contracted to export its entire output to Bangladesh.

The move to amend a 2018 Ministry of Power regulation for the "import/export (cross border) of electricity" made through a memorandum on August 12 came less than a week after Hasina flew to New Delhi.

It states that the "Government of India may permit connection of such generating station to the Indian grid to facilitate sale of power within India in case of sustained non-scheduling of full or part capacity".

In essence, this clause clears the decks for the plant to sell its power domestically in case of any delays in payments from Bangladesh.

However, Adani Power last Thursday said it was committed to supplying electricity to Bangladesh, and that the recent amendment to the power export rules does not affect its existing contract.

Except Adani, Bangladesh imports electricity from two other Indian power traders -- NTPC Vidyut Vyapar Nigam Ltd and PTC India Ltd -- and a unit of Sembcorp Energy India Ltd.