Modi government distances itself from Adani’s troubled Bangladesh deal

With the Adani Group’s stocks continued to be hit hard by the Hindenburg Research’s report, Prime Minister Narendra Modi’s government on Thursday subtly distanced itself from a power purchase agreement between India’s richest man Gautam Adani’s conglomerate and neighbouring Bangladesh, although the deal appeared to have run into a hitch.

The Bangladesh Power Development Board (BPDB) has sought revision of a 2017 agreement to buy electricity from a 1600 MW plant of the Adani Power Limited – a unit of the Adani Group – at Godda in Jharkhand in India. The BPDB has asked for the revision of the deal as the price the Adani Power Limited asked for electricity generated at the coal-powered plant appeared to be too expensive.